BofA Predicts Trading Revenue Will Drop
September 17 2015 - 9:30AM
Dow Jones News
Bank of America Corp. Chief Executive and Chairman Brian
Moynihan said Thursday that the bank's trading revenue could fall
5% to 6% in the third quarter.
Mr. Moynihan, speaking at the Barclays financial services
conference, said he expected revenue from the unit that trades
bonds, currencies and commodities would be down, but revenue from
the smaller equities-trading unit would be up.
His statements echoed a similar prediction Wednesday by
Citigroup Inc. Chief Financial Officer John Gerspach, who said his
bank's trading revenue could decline 5% in the third quarter. Mr.
Gerspach said the decline would be partly because of tough
comparisons, given the strong performance in rates and currencies
products in September 2014.
At Bank of America, second-quarter revenue from the trading
business, excluding an accounting adjustment, fell 2%. It followed
the same pattern that Mr. Moynihan predicted for the third quarter,
with revenue down in fixed-income trading and up in equities
trading.
Mr. Moynihan took several questions; none were about the
shareholder vote next week that will determine whether he gets to
keep the chairman job.
The bank has been slashing expenses for years and Mr. Moynihan
vowed Thursday to continue to do so. But he also said that the bank
will double down on expenses even more if interest rates don't go
up.
"Let me assure you, if the revenue environment weakens or
interest rate structures don't move up and the economy slows down,
we'll have to take out more costs," Mr. Moynihan said.
Write to Christina Rexrode at christina.rexrode@wsj.com
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(END) Dow Jones Newswires
September 17, 2015 09:15 ET (13:15 GMT)
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