BofA joins rivals in predicting stronger investment banking revenue
Reuters
Published Mar 06, 2024 02:43PM ET
Updated Mar 06, 2024 04:53PM ET
By Saeed Azhar
NEW YORK (Reuters) -Bank of America expects its investment banking revenue to rise by 10% to 15% in the first quarter from a year earlier, joining rivals who have recently turned more optimistic.
"We've had better capital markets activity, you can see that just in the deal flow," BofA's Chief Financial Officer Alastair Borthwick said at a financial conference on Wednesday.
Citigroup Jane Fraser told investors on Tuesday she expects investment banking fees to rise by a low-teens percentage in the first quarter versus the fourth quarter of 2023.
And JPMorgan Chase (NYSE:JPM) CFO Jeremy Barnum had earlier signalled fees would climb by a percentage in the low-to-mid teens this quarter versus a year earlier.
The BofA markets division is expected to have a robust performance fuelled by equities trading in the first quarter, Borthwick said. That will translate to flat revenue growth compared with a strong quarter a year earlier.
The S&P 500 index has gained 6.9% so far this quarter, led by technology stocks such as Nvidia Corp (NASDAQ:NVDA) .
Citigroup expects its markets revenue to drop by 8% to 12% in the first quarter compared with a strong comparable quarter in 2023, while JPMorgan expects trading revenue to decline by 5% to 10% in the quarter compared to a strong quarter in the previous year.
Bank of America's net interest income (NII) -- the difference between what lenders earn on loans and pay on deposits -- is expected to hit the upper range of the $13.9 billion to $14 billion forecast in the first quarter.
The lender's NII decreased 5% to $13.9 billion in the fourth quarter as it paid more for customer deposits.
Profit at the second-largest U.S. bank shrank in the fourth quarter, hurt by $3.7 billion in one-off charges and a slide in interest income as it paid more to hold on to customer deposits.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.