BofA’s Markets Business Could Reach 2020 Levels, Moynihan Says
BofA’s Markets Business Could Reach 2020 Levels, Moynihan Says
(Bloomberg) -- Bank of America Corp.’s markets business is growing close to the record performance set during the height of the Covid-19 pandemic, Chief Executive Officer Brian Moynihan said.
Capital markets will be up from 2019 and close to 2020, which included the best fourth quarter for the business in the past “10 to 15 years,” Moynihan said Tuesday at the Goldman Sachs U.S. Financial Services Conference. “We’re right around those levels and we’ll see how it ends up.”
Global banking and markets were bright spots in the Charlotte, North Carolina-based company’s latest financial results. Sales and trading rose about 9% in the third quarter from a year earlier, to $3.6 billion. Overall investment-banking fees increased 23% to $2.2 billion, with firms leaning on the company to handle their debt and equity financing.
Bank of America is building its global-markets business under President Jim DeMare to be even more competitive as longtime leader Thomas Montag steps aside at the end of the year. The business is benefiting from investments and capital set aside in previous quarters, Moynihan said Tuesday.
Also among Moynihan’s comments:
- Bank of America is seeing more demand in credit-card spending and mortgages.
- “We are driving overdraft fees down” as the bank makes changes including opening no-overdraft accounts for customers, Moynihan said.
- The firm is expecting 1% to 2% growth in expenses next year.
- In the credit-card business, “it’s a dog fight,” with Bank of America increasing rewards to remain competitive, Moynihan said. “It’s the right thing to do for the business.”
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