Bank of America forecasts over 10% drop in Q3 investment banking fees amid strong loan growth

SentiSense · Published Sep 14, 2026, 1:29 PM ET · Updated Sep 28, 2026, 2:45 AM ET

Bank of America expects its third-quarter investment banking fees to fall more than 10%, projecting $1.6 billion to $1.8 billion, while the CEO highlighted resilient consumer activity, robust loan growth, and rising net interest income. The fee decline reflects weaker deal flow, but the bank's broader earnings outlook remains positive due to strong credit and interest‑rate driven revenue.

Bank of America announced that its investment banking fees for the third quarter are expected to decline by more than 10%, with projected fee revenue between $1.6 billion and $1.8 billion. The forecast signals a notable slowdown in deal‑making activity, and the bank's shares fell the same day CEO Brian Moynihan delivered the outlook at an industry conference.

Despite the fee pressure, the CEO emphasized that consumer resilience, solid loan growth, and an increase in net interest income (NII) continue to underpin the bank's earnings narrative, guiding to upper‑single‑digit NII growth in the 7% to 8% range.

Analysts will be watching whether the decline in fee revenue is a short‑term cyclical dip or the start of a longer trend, especially as market volatility and higher financing costs could further dampen deal flow.

The dual picture of fee compression and strong loan‑related earnings highlights the importance of diversification within large banking institutions. Investors should monitor upcoming quarterly results for any updates on fee recovery, loan portfolio performance, and the trajectory of net interest margins.