BofA CEO Warns Q3 Investment Banking Fees to Drop at Least 10%
BAC sits 30% above its 52-week low of $46.115.
Summary
CEO Brian Moynihan told the Barclays conference that Q3 investment banking fees will fall to $1.6B-$1.8B, down at least 10% from $2B a year ago. He attributed the decline to a broader market slowdown in investment banking activity. The warning sparked a selloff in bank stocks, according to Barrons.com. This is a direct, forward-looking revenue warning from the top executive, and it comes after a strong Q2 where the bank beat estimates. The guidance suggests a meaningful sequential and year-over-year decline in a key fee-generating business, which could pressure near-term earnings expectations.
At the time of this announcement, BAC was trading at $60.11 on NYSE in the Finance sector, with a market capitalization of approximately $420.3B. The 52-week trading range was $46.12 to $65.23. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.