Performance of investment banking, one of the primary sources of revenues for Bank of America BAC, is expected to be muted in first-quarter 2019. So, this will likely have an adverse impact on the bank’s results, slated on Apr 16.
Investment banking income basically comprises underwriting revenues (equity and debt) and advisory fees (generated from M&A deals and IPOs). So, let’s check how these are likely to have performed in the to-be-reported quarter.
Prolonged government shutdown at the beginning of the quarter and fears of economic slowdown weighed on companies’ plans to raise capital by issuing shares. Thus, BofA’s equity underwriting fees are expected to be weak.
