Bank of America anticipates a substantial 15% increase in trading revenue for the second quarter compared to the same period last year, a period significantly affected by volatility stemming from higher U.S. tariffs. CEO Brian Moynihan highlighted the need for careful year-over-year comparisons, noting that the prior year’s “Liberation Quarter” – when President Donald Trump implemented global import tariffs in April 2025 before most were struck down by the Supreme Court – had created a low base. Bank of America is a major American financial institution, providing a wide range of banking, investing, asset management, and other financial and risk management products and services.
Beyond trading, Moynihan indicated a positive outlook across several key segments. Investment banking is reported to be in “pretty good shape,” whilst wealth management revenue growth is expected to land in the low teens percentage-wise year-over-year. The bank also revised its net interest income (NII) growth outlook for 2026, raising it to a range of 6% to 8% from the previous 5% to 7% announced in April. For the current year, NII – the difference between interest earned on loans and paid on deposits – is projected to hit the upper end of its 6% to 8% range, reflecting the benefits U.S. banks have seen from repricing fixed-rate assets into higher-yielding ones.
Moynihan also offered broader insights into market conditions and consumer behaviour. He observed that global dealmaking has recently rebounded, overcoming volatility following the Iran war, with companies and investors proceeding with larger transactions. The pipeline for initial public offerings (IPOs) is robust and activity is high, further fuelled by anticipation around the expected blockbuster debut of Elon Musk’s SpaceX, which could potentially encourage more AI-focused company IPOs. Consumer spending and credit quality remain strong, supported by healthy employment despite ongoing inflationary pressures and higher interest rates. Bank of America’s internal data shows total credit and debit card spending per household increased by 4.8% year-over-year in April, up from 4.3% in March.
