By Saabira Chaudhuri
Bank of America Corp. disappointed investors Tuesday, giving a
weak outlook for trading revenue.
The Charlotte, N.C., lender's chief executive, Brian Moynihan,
said at an industry conference that fourth-quarter trading revenue
would be lower than both year-ago levels and the third
quarter's.
Bank of America's shares fell 2.4% in recent morning trading,
while shares of rivals Goldman Sachs Group Inc., Citigroup Inc. and
Morgan Stanley logged declines that were broader than those shown
by the S&P 500.
Trading revenue at the nation's biggest banks has been pummeled
in recent quarters, although third-quarter results largely topped
Wall Street expectations as fixed income, currencies and
commodities trading revenue came in stronger than estimated.
Bank of America in October reported trading revenue, excluding
adjustments to the value of the bank's debt, rose 9.2% to $3.27
billion. Fixed-income, currency and commodities trading, or FICC,
revenue was particularly strong as the lender benefited from an
easy comparison with a year-ago period in which FICC trading
revenue fell 20%. In the third quarter, FICC trading revenue was up
11% from the third quarter of 2013 to $2.25 billion. Equity sales
and trading rose 5.9% from the third quarter of 2013 to $1.03
billion.
Write to Saabira Chaudhuri at saabira.chaudhuri@wsj.com
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