Bank of America says Q3 investment banking fees down 30%-35% for sector
6:57 pm Monday, September 11th, 2023
NEW YORK (Reuters) -Investment banking fees are down 30% to 35% in the third quarter from a year earlier for the sector, but Bank of America will fare better than that average, its chief financial officer said on Monday.
“We’ll do slightly better than that,” Alastair Borthwick told the Barclays Financial Services Conference, referring to investment banking fees for the industry.
He said that puts the bank’s investment banking fees for the future around the $1 billion mark.
Analysts at Piper Sandler said in a note $1 billion of anticipated third-quarter investment banking fees are below its estimate and could put a few percentage points of pressure on the bank’s earnings per share estimate.
BofA’s posted investment banking fees of $1.2 billion in the second-quarter, which boosted its global banking unit’s net income by 76% to $2.7 billion,
Borthwick also said income at the bank’s global markets business should rise in the low, single-digit range from a year earlier.
(Reporting by Saeed Azhar and Pritam Biswas; editing by Jonathan Oatis, Deepa Babington and Anna Driver)
