BofA shares slide after CEO warns of flat trading revenue

Bank of America shares fell sharply Monday after CEO Brian Moynihan said third quarter trading revenue is expected to be relatively flat from a year earlier and projected investment banking fees below analyst expectations.

Moynihan said at a Barclays conference that investment banking fees are expected to come in between $1.6 billion and $1.8 billion. Analysts had been looking for roughly $2 billion.

Bank of America shares fell as much as 6% following the comments and closed 5.1% lower, their worst session since April 2025.

Other major bank stocks also declined. Goldman Sachs fell about 4%, Morgan Stanley dropped 3.6% and Citigroup finished 1.9% lower.

Moynihan said equities trading revenue has increased so far this quarter, while fixed income trading has declined, leaving overall trading revenue on track to remain roughly flat.

Analysts at Keefe Bruyette and Woods said the weakness in financing activity partly reflected a moderation in international and Asian prime brokerage balances.

Moynihan said greater stability in interest rates could support trading and debt financing activity. The Federal Reserve is scheduled to meet later this week, with its rate decision expected to provide more clarity for markets.

The softer outlook follows a strong first half for Wall Street trading businesses. Bank of America reported record equities trading revenue during the second quarter and is still seeking its 17th consecutive quarter of sales and trading revenue growth.

In investment banking, Moynihan said the bank has been less exposed to some of the industries driving recent merger and acquisition activity, although its deal pipeline remains strong.

Wells Fargo analyst Mike Mayo said the comments reinforced concerns that Bank of America has underperformed peers in capital markets.

Moynihan also said he remains confident in the bank’s net interest income outlook. Bank of America has previously guided for growth near the upper end of its 6% to 8% range.