Bank of America CEO Warns of Sharp Q3 Investment Banking Fee Decline

Bank of America CEO Brian Moynihan warned on Monday that the bank's investment banking fees are expected to decline by 10% to 20% in the third quarter, a sharp reversal from the strong performance earlier in the year. Speaking at the Barclays Global Financial Services Conference, Moynihan projected third-quarter investment banking revenue of $1.6 billion to $1.8 billion, down from $2 billion in the same period last year. The cautious outlook sent Bank of America shares down approximately 5% on the day, making it the worst performer in the KBW Bank Index. The decline triggered a broader sell-off in banking stocks, with Goldman Sachs falling about 4% and Morgan Stanley dropping around 3.6%. Citigroup, JPMorgan Chase, and Wells Fargo each declined between 1% and 2%. Moynihan also indicated that sales and trading revenue is expected to be roughly flat year-over-year in the third quarter, versus $5.4 billion in the third quarter of 2025. He attributed the slowdown to a cooling of financing and prime brokerage activity over the summer as investors pulled back on risk.