BofA Sees Rising Investment-Banking Fees, Moynihan Tells CNBC
The firm said last week that it had $1.6 billion in fourth- quarter investment banking fees, a 58 percent increase from a year earlier, fueled by more debt underwriting. That was the best quarter for Charlotte, North Carolina-based Bank of America in “a long time,” Moynihan said today in a CNBC interview. His company is ranked second by assets among U.S. lenders.
“The pipeline is strong, we expect to see strong fees this year because the activity has picked up,” said Moynihan, 53. “The financing activity has picked up, more leveraged buyout activity, more equity offerings starting to come through, and the mergers and acquisition activity.”
Moynihan, who started as CEO in 2010, has said he would trim $3 billion in annual costs from investment banking and trading operations by 2015. He said today that the firm is mostly done with job cuts in Wall Street units after firings at Asian and European desks. The CEO also said he expects the equities division to improve as investors return to the asset.
“You’ll see a rebound, just because of the fundamental volume dynamics going on,” Moynihan said. “Our equities business was relatively flat over the last couple of years just because of the volumes.”
-- Editors: Rick Green, Dan Kraut