Bank of America sees dealmaking revenue drop

Bank of America expects its investment banking revenue to drop by at least 10% in the third quarter. CEO Brian Moynihan announced the projection on Monday, 14 September, during the Barclays global financial services conference.

Brian Moynihan projected that investment banking revenue will range between $1.6 billion and $1.8 billion for the quarter. That marks a decline from the $2 billion recorded during the same period last year. He explained that the broader industry market fell by around 10%, and the bank held smaller market shares in segments that saw the highest transaction activity.

Sales and trading revenue is expected to stay roughly flat compared to the $5.4 billion generated in the third quarter of 2025. Brian Moynihan noted that deal pipelines remain robust, though he warned that potential interest-rate hikes could weigh on financing demand. Global brokerages expect the Federal Reserve to lift rates later this year following stronger-than-expected inflation reports.

Consumer spending continues to hold up and credit quality remains exceptionally strong, Brian Moynihan added. He concluded that the lender remains very optimistic about the overall United States economy.