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 roughly 10% or more from the second quarter.
Speaking to investors at the conference, Moynihan also reiterated the bank's commitment to $250 billion of infrastructure financing running from the start of 2024 through 4 July 2027, underlining the scale of the bank's long-term capital deployment plans even as short-term dealmaking activity softens.
INDIA INVESTMENT AND AI ROLLOUT HIGHLIGHTED
Moynihan disclosed a $1.9 billion strategic investment in India through a partnership with Jio, aimed at supporting commercial banking and small and medium-sized enterprise lending in the country. The move signals Bank of America's intent to deepen its presence in one of the world's fastest-growing banking markets, aligning with a broader push by global lenders to capture growth in emerging Asian economies.
The chief executive also detailed the bank's progress on artificial intelligence, saying Bank of America has deployed between 130 and 140 AI and machine-learning use cases, including 114 live generative-AI applications. He said roughly $400 million invested in these technologies had produced approximately $800 million in benefits, an indication of the returns the bank is generating from its multi-year technology investment programme.
ERICA USAGE CONTINUES TO CLIMB
Moynihan pointed to continued growth in usage of Erica, the bank's digital assistant, which now has 20 million users and handled 200 million interactions in the prior quarter. The figures underscore how deeply embedded the tool has become in Bank of America's retail banking operations, as customers increasingly turn to automated channels for everyday banking needs.
The remarks came as banks across Wall Street used the Barclays conference to update investors on trading, dealmaking and consumer trends heading into the final months of the year. Moynihan's comments on softer investment-banking fees reflect a broader theme of moderating deal activity after a stronger second quarter, even as the bank continues to point to underlying strength in its consumer and technology franchises.
The reiteration of the $250 billion infrastructure financing commitment, which spans from the start of 2024 through 4 July 2027, gives investors a multi-year marker against which to measure the bank's lending activity in sectors such as energy, transport and digital infrastructure. Moynihan did not disclose how much of the commitment has been deployed to date, but the reaffirmation at a major investor conference signals the bank intends to keep the pledge central to its wholesale banking narrative through the remainder of the commitment period.
Taken together, the Q3 fee guidance, the India investment, the AI deployment figures and the continued build-out of Erica point to a bank balancing near-term softness in one fee-generating business against sustained investment in technology and international expansion. Moynihan's appearance at the Barclays conference gave investors a comprehensive cross-section of these initiatives ahead of the bank's third-quarter results.
The Barclays conference has become a fixture on the autumn calendar for large US banks, giving chief executives a platform to update shareholders on trading, dealmaking and consumer trends before quarterly results are formally reported. The $1.9 billion Jio partnership extends Bank of America's international commercial banking and SME lending reach into one of the largest emerging economies, complementing the domestic AI and digital-assistant initiatives Moynihan also detailed during his appearance. Between the 130-140 AI and machine-learning use cases, the 114 live generative-AI applications, and Erica's 20 million users handling 200 million interactions last quarter, Moynihan presented a bank whose technology investment is increasingly quantifiable in both usage and financial-return terms.