Bank of America reported a drop in second-quarter profits, mainly due to a decline in investment banking income, as underwriting activity was well below the record levels of the previous year.
Wall Street investment bankers have seen a drop in deal activity in the first half of 2022 amid volatility in capital markets, geopolitical tensions and reduced risk appetite sweeping markets globally.
With IPOs on hold and businesses hitting the brakes on trading, Bank of America’s investment banking fees fell 47% to $1.1 billion in the quarter.
Profit fell to $5.93 billion, or 73 cents a share, for the quarter to June 30, from $8.96 billion, or $1.03 a share, a year ago.
The company’s stock fell 1.7% in pre-conference trading.
Source: Capital
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