Bank of America Warns of Weaker Q3 Capital Markets Fees

EarningsAnalyst
โดย Zacks Investment Research·US·Read original
Summary · why it matters

Bank of America CEO Brian Moynihan expects third-quarter 2026 investment banking fees of $1.6-$1.8 billion, below the $2 billion booked in the third quarter of 2025, a decline of about 15% year over year at the midpoint and roughly 20% from $2.14 billion in the second quarter of 2026. Moynihan also expects sales and trading revenues to be relatively flat year over year, implying around $5.36 billion based on third-quarter 2025 levels, putting combined investment banking and trading revenues at $6.96-$7.16 billion, down from $7.36 billion a year earlier. The softer outlook reflects slower financing and prime-brokerage activity as well as unusually strong year-ago performance, and investment banking fees represented nearly 15% of Bank of America's $13.81 billion of third-quarter 2025 non-interest income, though management projects investment management AUM fees to rise 10-15% year over year in the current quarter. Moynihan called the deal pipeline very strong, suggesting the weakness is timing-related rather than structural, even as expenses are expected to run around $18.6 billion. Among peers, Citigroup expects markets revenues to grow in the mid-single digits year over year and investment banking revenues to rise in the low single digits, while KeyCorp raised its full-year 2026 revenue outlook to approximately 8% growth from a prior 7-8% target, driven by non-interest income now expected to grow 4-5% instead of 3-4%, with net interest income still seen up 9-11%.

Impact on stocks 3

Financials± Mixed · 2 stocks
Bank of America Corp
BAC
▼ NegativeCapitalrelevance

Bank of America CEO guides Q3 investment banking fees down ~15% YoY to $1.6-$1.8B, with combined IB and trading revenues falling from $7.36B a year earlier.

KeyCorp
KEY
▲ PositiveCapitalrelevance

KeyCorp raised its full-year 2026 revenue outlook to ~8% growth from a prior 7-8% target, driven by stronger non-interest income.

Digital Finance & Tokenization▲ · 1 stocks
Citigroup Inc.
C
▲ PositiveCapitalrelevance

Citigroup expects markets revenues to grow mid-single digits and investment banking revenues to rise low single digits YoY, contrasting with BofA's decline.

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