CEO Brian Moynihan stated on Wednesday that Bank of America anticipates regulatory reforms under President-elect Donald Trump to encourage mergers and acquisitions among businesses, including banks.
Moynihan mentioned to investors at the Goldman Sachs Financial Services conference that regulatory changes will facilitate the completion of deals.
His remarks mirrored optimistic remarks made by competitors on Wall Street, such as Goldman Sachs and JPMorgan (JPM.N), which opened a new tab this week.
According to Moynihan, there is a slight increase in activity in the equity capital markets, which will eventually increase IPOs.
He remarked, “A certain level of valuation alignment will be essential for IPOs to succeed, perform well, and open the door for others to follow.”
According to Moynihan, the bank’s wealth management fees may increase by 20% in the fourth quarter compared to the same period last year, while investment banking fees may increase by 25%. According to him, trading revenue might reach a record high.
Moynihan expressed confidence in the company’s fourth-quarter net interest income (NII) objective, which is the gap between loan earnings and deposit payments. According to him, that number will keep rising in 2025.
NII was projected by the bank to reach at least $14.3 billion in the fourth quarter.
“So far, we’re witnessing loan growth that is stronger than what we observe in the industry, averaging 4% or more. Thus, the economy is expanding more quickly,” he stated.
According to Moynihan, businesses were doing well and consumers were resilient.
The CEO remarked that the recent surge in bank stocks was “really, really rational,” which caused the audience to laugh.
He mentioned the GDP forecast and interest rates in the United States as positive aspects for the sector.
Bank of America’s stock has increased by almost 36% so far this year.
The strong financial health of consumers has boosted spending and attracted interest payments in recent quarters, which has helped the second-largest U.S. bank. The lender’s consumer business accounts for 39% of its net profits.
Banks in the United States may do much better in the months ahead. Since solid economic growth and reduced loan rates keep borrowers on track, Moody’s Ratings recently upgraded its worldwide outlook for banks from negative to stable.
