NEW YORK – Bank of America expects its investment banking fees to grow by 10% to 15% in the third quarter compared to the same period last year, Chief Financial Officer Alastair Borthwick said on Monday.
Speaking at an investor conference, Borthwick noted that the bank’s trading revenue is also on track to rise by a mid-single-digit percentage, marking the 14th straight quarter of growth in its markets division.
“The investment banking fee pool is up 10% to 15%, and we expect to be in line with that—perhaps even slightly ahead,” Borthwick said.
M&A Momentum and AI Optimism Fuel Growth
The uptick in investment banking comes amid a rebound in global dealmaking. Mergers and acquisitions have reached $2.6 trillion so far this year—the strongest performance for the first seven months of any year since the 2021 post-pandemic boom.
Corporate boards are pursuing growth more aggressively, and enthusiasm surrounding artificial intelligence has helped counterbalance concerns over tariffs and broader economic uncertainty.
Healthy Consumer and Commercial Segments
Borthwick said consumer finances remain solid, with credit card spending rising and long-term delinquencies continuing to decline. “The consumer appears resilient, in a good place, and that’s reflected in our asset quality numbers,” he said.
Commercial banking remains strong as well, though the CFO flagged commercial real estate as an area of concern, echoing industry-wide caution.
Net Interest Income Outlook
Net interest income (NII) is projected to grow by 6% to 7% this year, supported by higher rates and the repricing of fixed-rate assets. The bank had reaffirmed in July that it expects fourth-quarter NII to reach $15.5 billion to $15.7 billion, with continued growth anticipated into next year.
Investor Day Scheduled
Borthwick also announced that Bank of America will host its first Investor Day in over a decade on November 5, where it plans to outline long-term growth strategies across its business segments.
