NEW YORK (Sept 15): Bank of America expects its investment banking ​fees to drop by at least 10% in the ‌third quarter, while sales and trading revenue will be flat, CEO Brian Moynihan said on Monday.

Shares of BofA extended losses after his comments, ​dropping over 5% by late afternoon trade. The S&P ​500 banking index was down 2.7%.

Moynihan projected investment banking ⁠revenue to be between US$1.6 billion and US$1.8 billion in the third ​quarter, down from US$2 billion in the same period a year ​earlier.

"What we're seeing is the market generally in investment banking is down 10% or so," he said at the Barclays global financial services conference.

"We're ​down to small position in some of the businesses that ​had more activity, so we'll be down probably a bit more than that."

Moynihan ‌said ⁠he expects sales and trading revenue to be roughly flat in the third quarter, versus US$5.4 billion in the third quarter of 2025.

He cautioned if interest rates go ​up, that will ​slow down ⁠some of the financing demand.

Global brokerages expect the Federal Reserve to raise ​interest ⁠rates this year after stronger-than-expected inflation readings reinforced bets that policymakers will keep tightening monetary policy.

Uploaded by Siow Chen Ming