Bank of America shares slide as investment banking fees contract

Investment banking revenue is expected to land between $1.6 billion and $1.8 billion, a notable step back from the $2 billion recorded during the same period last year. Moynihan noted that while the broader market for deal-making has slowed, the bank’s specific positioning in certain high-activity segments may result in a decline slightly steeper than the industry average.

Despite the cooling in fee income, the bank anticipates sales and trading revenue to remain flat, mirroring the $5.4 billion mark from the previous year. While the current deal pipeline remains robust, Moynihan acknowledged that potential Federal Reserve interest rate hikes could dampen financing demand. Nevertheless, he maintained an optimistic outlook on the broader U.S. economy, citing persistent consumer spending and high credit quality as signs of underlying resilience.