BofA expects investment banking fees to grow 10% to 15% in 3Q

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NEW YORK (Reuters) -Bank of America expects investment banking fees to increase 10% to 15% in the third quarter from a year earlier, Chief Financial Officer Alastair Borthwick said on Monday.

Trading revenue from the markets division is projected to rise by a mid-single digit percentage, climbing for a 14th consecutive quarter, he told investors at a conference.

“The investment banking fee pool is up 10% to 15%, we’ll be in line with that, maybe we’ll do slightly better,” Borthwick said.

Global M&A has reached $2.6 trillion, the highest for the first seven months of the year since the 2021 pandemic-era peak. Corporate boards are seeking growth, and optimism about an artificial intelligence boom has offset the uncertainty over U.S. tariffs.

Consumer finances remain healthy as credit card spending accelerates and fewer borrowers have longer-term delinquencies, he said.

“The consumer at this point appears to be… resilient, doing well and in a good position, and that’s reflected in our asset quality nunbers,” he said.

Commercial banking asset quality also remains strong, except in commercial real estate, Borthwick said.

Net interest income — or the difference between what a bank earns on loans and pays out for deposits — is on track to climb by 6% to 7% this year, fueled by higher interest payments and a boost from fixed-rate asset repricing, he said.

The bank in July reiterated its net interest income would reach $15.5 billion to $15.7 billion in the fourth quarter. It is expected to increase again next year, he added.

Bank of America will hold an investor day on November 5, its first in more than a decade, to discuss growth opportunities across its businesses, Borthwick said.

(Reporting by Saeed Azhar, editing by Lananh Nguyen, Editing by Franklin Paul)