BofA Joins Banks Pointing to Trading Rebound to End the Year
(Bloomberg) -- Bank of America Corp. joined its biggest rivals in predicting a trading rebound to close 2019.
Trading revenue is up 7% to 8% from last year’s fourth-quarter, led by an increase in the fixed-income unit, Chief Executive Officer Brian Moynihan said Wednesday at an investor conference in New York. Investment-banking fees are on pace to finish the year up 3% to 4%, he said.
Citigroup Inc. said at the same conference Tuesday that its trading revenue is set to rise by a percentage in the “high teens,” while JPMorgan Chase & Co. said its results are set to rise “meaningfully.”
Last year’s final quarter was rough on banks’ trading desks as wild market swings kept clients on the sidelines, with JPMorgan’s bond-trading unit posting its lowest revenue since the financial crisis. BofA posted $2.5 billion in trading revenue a year ago as its fixed-income revenue also dropped.
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