Latest Videos

{{ currentStream.Name }}

Related Video

Continuous Play:

The information you requested is not available at this time, please check back again soon.

More Video

May 27, 2020

Bank of America CEO sees trading revenue rising close to 10% this quarter

David Burrows discusses Bank of America and Wells Fargo


Security Not Found

The stock symbol {{StockChart.Ric}} does not exist

See Full Stock Page »

Bank of America Corp. Chief Executive Officer Brian Moynihan said he expects the company’s traders to do very well in the current quarter, while not up to the pace set in the first three months of the year.

Combined bond- and stock-trading revenue may rise in the “high single digits” or even close to 10 per cent from a year ago, he told investors Wednesday at a virtual conference. The bank’s trading revenue jumped 22 per cent in the first quarter to US$4.3 billion.

“You’ve seen the volatility come down in the market, and so equities is down and FICC is up a lot,” Moynihan said, referring to the fixed income, currencies and commodities business.

Investment-banking revenue is forecast to rise by about 10 per cent. That compares with an 11 per cent decline in the first quarter to US$4.6 billion.

Moynihan is the latest Wall Street bank chief to give a snapshot of trading performance. On Tuesday, JPMorgan Chase & Co. CEO Jamie Dimon said the environment has been as strong this quarter as it was in the first three months of the year, when the bank set a record for revenue from that unit.

Here are other takeaways from Moynihan’s remarks:

• The company has ample capital to support dividends. “We earned twice our dividend in the toughest quarter we’ve had in many years,” he said. “I don’t think it’d be good policy to restrict dividends across the board, because every company is different.”

• Negative interest rates are unlikely in the U.S., and have been shown to be detrimental in other nations, Moynihan said. “We’ll take whatever comes at us and deal with it, but I just don’t think it’s wise policy,” he said.

• Instead, he views U.S. efforts aimed at economic relief as more effective. “What the Fed has done with the standby facilities has stabilized markets,” while actions by the administration and Congress have helped cash-strapped consumers as unemployment rises. “That’s the way to go about fixing this crisis. The rate structure’s not going to make people take activity if they don’t have the cash and confidence to do it.”

--With assistance from Michelle F. Davis.