Bank of America posts drop in quarterly profit as dealmaking slumps

BANK of America Corp reported a drop in second-quarter profit on Monday (Jul 18), hit by a slump in investment banking revenue as underwriting activity stood at a fraction of last year’s record levels.

Wall Street investment bankers, who were neck-deep in deals last year, have seen activity slump in the first half of 2022 amid volatility in the capital markets, geopolitical tensions and a risk-off sentiment that has swept across markets globally.

With stock market listings on ice and companies slamming the brakes on dealmaking, Bank of America’s investment banking fees fell 47 per cent to US$1.1 billion in the reported quarter.

Profit applicable to common shareholders fell to US$5.93 billion, or 73 cents per share for the quarter ended Jun 30, from US$8.96 billion or US$1.03 per share, a year earlier. REUTERS