Bank of America chief executive Brian Moynihan told the Barclays 24th Annual Global Financial Services Conference on Monday that the bank expects third-quarter 2026 investment-banking fees of between $1.6 billion and $1.8 billion, a decline of at least 10% from about $2 billion a year earlier.
Speaking to investors at the conference, Moynihan also reiterated the bank's commitment to $250 billion of infrastructure financing running from the start of 2026 through 4 July 2027. He said much of that activity would be facilitated through capital markets rather than held on the bank's balance sheet.
INDIA INVESTMENT AND AI ROLLOUT HIGHLIGHTED
Moynihan also discussed the bank's $1.9 billion investment in India, announced in August for a stake of up to 49.9% in Jio Credit, describing it as a partnership with Jio in which Bank of America contributes commercial banking and small and medium-sized enterprise lending expertise, and not a move to set up a traditional retail bank in the country.
The chief executive also detailed the bank's progress on artificial intelligence, saying Bank of America has deployed roughly 130 to 150 AI use cases, with about 50 more to come. He put the associated costs at about $400 million against approximately $800 million of expected benefits.
ERICA LIMITED TO DEFINED REQUESTS
Moynihan said Erica, the bank's digital assistant, is limited to about 700 defined customer requests because its answers must be accurate, reflecting the bank's principle that it owns the answer on AI-generated work.
Moynihan said the broader investment-banking fee pool was down about 10% year on year and that trading revenue was expected to be roughly flat. In the second quarter, the bank's investment-banking fees rose 50% to $2.1 billion.
The bank announced the $250 billion commitment in August, targeting areas including data centres and energy infrastructure.
Bank of America is scheduled to report third-quarter results on 14 October 2026.
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