BofA Expects Q3 Investment Banking Fees to Fall 10%

Bank of America anticipates its third-quarter investment banking fees will decline by at least 10% year over year, falling to a range of $1.6 billion to $1.8 billion from $2 billion during the same period in 2025, according to an Investing.com report. The projected pullback marks a normalization following a strong first half of 2026 across major Wall Street institutions.

"What we’re seeing is the market generally in investment banking is down 10% or so," said Brian Moynihan, Chairman and CEO of Bank of America, 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."

Prior Quarter Surge and Market Reaction

The anticipated third-quarter softening follows a strong performance earlier in the year. During the second quarter, Bank of America posted a 50% jump in investment banking fees to $2.1 billion alongside a 33% increase in trading revenue.

Following Moynihan's remarks at the Barclays conference, Bank of America shares fell 5% in afternoon trading, reflecting investor sensitivity to cyclical shifts in dealmaking activity.

Pipeline Activity and Deal Flow

Despite the projected fee contraction for the quarter, executive commentary pointed to steady underlying engagement among corporate clients. While transaction timing fluctuates, corporate pipelines remain populated with prospective mergers, acquisitions, and debt issuances.

"Right now we’re seeing it solid, and the pipelines are staying full," said Brian Moynihan, Chairman and CEO of Bank of America.

What Is at Stake for Wall Street

For major commercial and investment banks, fee revenue provides an essential counterweight to net interest income margins. A 10% or greater contraction in investment banking revenue highlights the uneven pace of capital markets activity as firms navigate fluctuating interest rate expectations and corporate valuation adjustments across global sectors.