Updated: December 10, 2025 • New York
Bank of America chief executive Brian Moynihan has told investors to brace for a strong finish to the year, saying he expects revenue from the bank’s markets business to rise by a high single-digit percentage to around 10% in the fourth quarter of 2025. The comments, first reported by Reuters , underline how trading desks are once again propping up big-bank earnings even as parts of Wall Street cool.
Moynihan also signalled that investment-banking fees will remain broadly flat in the quarter – a sign that deal-making, stock listings and big-ticket corporate financings are stabilising rather than roaring back. For investors, the split tells a clear story: markets are lively; boardrooms are still cautious.
What does “markets revenue” actually mean?
Markets revenue is the money Bank of America earns from its sales and trading operations: buying and selling bonds, currencies, commodities and equities on behalf of clients, making markets, and managing risk across complex portfolios. It is a part of the bank’s broader markets and securities division, and it tends to spike when there is more volatility and heavier client activity.
When a CEO says markets revenue could jump by as much as 10% year-on-year, it usually means that clients are actively repositioning: hedging rate risk, moving in and out of credit, and trading around big macro stories such as Federal Reserve decisions, election outcomes and growth fears. Banks like Bank of America, JPMorgan and Citi rely on that activity to smooth out earnings when other lines, such as consumer lending or advisory work, are under pressure.
For readers who want a deeper dive into how banks generate income from trading desks and securities operations, there is a useful primer on trading revenue and dealer activities on Investopedia .
Flat investment banking: good news or warning sign?
The other half of Moynihan’s message is more muted. While trading is set for a strong quarter, investment banking is “broadly flat”. That means fees from advising on mergers and acquisitions, underwriting bond and equity issues, and arranging large corporate financings are not shrinking dramatically – but they are not booming either.
After a stop-start few years for deals, many chief executives are still navigating uncertainty over growth, interest rates and regulation. Some are reluctant to launch major takeovers or new share offerings until they have clearer visibility on the path of US rates and the global economy. Flat fees suggest a market that is stabilising rather than surging.
On a recent run of conference appearances and quarterly calls, Bank of America has stressed that it is building a more balanced mix of income across lending, markets, and fee businesses. Its latest investor presentations, available on the bank’s investor relations website , highlight that strategy in detail.
Why this matters for the Federal Reserve era
Moynihan’s comments land in a week when markets are already on edge for the Federal Reserve’s final policy meeting of the year. Traders are trying to gauge how many cuts might follow in 2026, what happens to bond yields, and how far borrowing costs will fall for companies and households.
For readers tracking the central bank closely, Swikblog has a dedicated explainer on when the US Federal Reserve meets, what time the decision lands, and how Jerome Powell’s press conference can move markets . The Fed’s tone on growth and inflation will shape everything from Treasury yields to the cost of credit card balances – and it will heavily influence how profitable trading and lending are for Bank of America in 2026.
A stronger Q4 in markets revenue suggests Bank of America has been able to capitalise on the swings in expectations around Fed policy, Treasury yields and the dollar. Volatility, when managed well, can be a revenue opportunity rather than a threat.
What it could mean for Bank of America’s stock – and other banks
For shareholders, guidance like this matters because it sets the tone ahead of full Q4 results. A near-10% jump in markets revenue gives Wall Street a reason to revisit their earnings models, especially if credit costs remain contained and consumer banking holds up. In recent quarters, Bank of America has already benefited from higher net interest income as rates stayed elevated, according to earlier earnings coverage from outlets such as CNBC and Bloomberg.
Investors will also compare Moynihan’s tone to signals from other big banks. Citigroup’s leadership, for instance, has recently pointed to a stronger fourth quarter for investment-banking fees even as their trading income comes under a little pressure – a reminder that each balance sheet is positioned differently, and that no two banks experience the same quarter in exactly the same way.
But taken together, Bank of America’s outlook suggests a sector that is far from crisis mode. If trading remains robust and deal-making eventually accelerates, 2026 could look healthier for Wall Street than the most pessimistic forecasts implied.
What everyday investors should watch now
If you own bank stocks, or broad financial ETFs, Moynihan’s comments are an early clue about how Q4 numbers might look when they land in January. A few key questions to keep in mind:
- Does Bank of America confirm this markets revenue jump when it reports, or does the final figure undershoot?
- Do credit losses or consumer-banking issues offset the trading strength?
- Do rival banks echo the same story on markets versus investment banking?
- How does the Fed’s latest decision change the rate and yield backdrop heading into 2026?
For now, the message is clear: Wall Street’s trading engines are still running hot. Even in a world of uncertain growth and shifting central-bank policy, Bank of America is betting that an active, restless market can deliver another quarter of upside.
Written by Swikblog Finance Desk
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