Key Takeaway:
- Bank of America expects second-quarter trading revenue to jump roughly 15% year-over-year.
- CEO Brian Moynihan also forecasted a lower-teens revenue increase in wealth management.
- Resilient consumer spending and employment continue to shield the bank from trade disruptions.
Bank of America Chairman and CEO Brian Moynihan said Wednesday the bank expects second-quarter trading revenue to rise about 15% from a year earlier, marking the 17th consecutive quarter of sales and trading growth near or above that level, driven by steady client activity and resilient consumer spending.
Moynihan shared the outlook at the Bernstein Strategic Decisions Conference, where he also projected wealth management revenue to increase in the “lower teens” year over year. He said operating leverage in the unit should remain strong and perform similarly to the previous quarter.
Despite the upbeat forecast, Bank of America shares fell 1.6% in late-session trading as investors broadly pulled back from banking stocks.
Investment Banking Pipelines Stay Strong
Brian Moynihan said Bank of America’s investment banking business continues to perform well despite ongoing economic uncertainty and trade-related concerns.
“Investment banking is in pretty good shape,” Moynihan said during the conference. “People are plowing through and adjusting to the situation.”
He added that deal pipelines remain strong as companies adapt to shifting market conditions. Moynihan cautioned, however, that some year-over-year comparisons may appear unusually strong because the economy weakened during the second quarter of 2025 following the announcement of so-called “Liberation Day” tariffs.
The comments reflect a broader trend among large U.S. banks that have benefited from volatile markets and sustained client trading activity over the past year.
Wealth Management Business Shows Operating Strength
Bank of America’s wealth management division is also expected to deliver solid growth in the second quarter, according to Brian Moynihan.
He said revenue in the segment should rise in the lower teens compared with the same period last year. Expense controls and operating leverage are expected to support profitability, he added.
“In that segment, expense leverage will have good operating leverage and will do as well as last quarter,” Moynihan said.
The wealth management business has become an increasingly important revenue source for major banks as higher-net-worth clients continue to seek advisory services and investment management during periods of market uncertainty.
Consumers Continue Spending Despite Economic Concerns
Moynihan also pointed to continued strength in consumer spending, reinforcing recent signals that household finances remain stable despite inflation pressures and global trade tensions.
“People are spending money,” Moynihan said. “Consumers are in pretty good shape because they’re employed.”
His comments align with recent industry observations that strong employment levels continue to support consumer banking activity and credit performance across the financial sector.
Investors, however, appeared cautious about banking stocks overall on Wednesday, overshadowing Bank of America’s growth projections. The decline in the company’s shares came even as executives highlighted strong trading, wealth management, and investment banking performance.
Bank of America is one of the largest U.S. lenders by assets and remains closely watched by investors for signals about consumer health, capital markets activity, and the broader economy.
