Bank of America (NYSE: BAC) shares fell on Monday following comments from CEO Brian Moynihan regarding the bank's outlook for the third quarter. Moynihan signaled that the recent surge in investment banking and trading revenue is not expected to continue at the same pace.
The bank anticipates third-quarter investment banking fees to decline by more than 10% compared to the previous year. Moynihan projected that fees will range between $1.6 billion and $1.8 billion, which is below Wall Street's consensus estimate of $2 billion.
Regarding trading revenue, Moynihan guided for the figure to be roughly flat after a 33% increase was recorded in the second quarter. This guidance comes as the bank's stock price retreated from recent highs, with other major financial institutions including Goldman Sachs Group (NYSE: GS), Citigroup Inc. (NYSE: C), and Wells Fargo & Co. (NYSE: WFC) also seeing declines.
Bank of America reported strong second-quarter results in July, with investment banking fees rising to $2.1 billion and trading revenue increasing by 33%.
