By Saeed Azhar and Utkarsh Shetti
NEW YORK, May 27 (Reuters) - Bank of America expects trading revenue to jump 15% in the second quarter from a year ago when the market was hit by the volatility from higher U.S. tariffs, its CEO, Brian Moynihan, said on Wednesday.
"Got to be careful year over year. You got to remember last year was liberation quarter, so some of these numbers will look big," Moynihan told a financial conference.
President Donald Trump implemented blanket global import tariffs in April
2025 on what he called "Liberation Day." The Supreme Court struck down most of them earlier this year.
Moynihan said investment banking is in "pretty good shape" and that wealth management revenue growth in percentage terms is expected to be in the low teens compared with a year earlier.
The value of global dealmaking recently rebounded after a sharp slump in the weeks after the start of the Iran war, as companies and investors shrug off volatility and press ahead with larger deals.
Moynihan said the pipeline for initial public offerings is full and activity is high.
Wall Street is abuzz over next month's expected blockbuster debut of Elon Musk's rocket and satellite maker, SpaceX, which could usher in more IPOs of AI-focused companies.
Moynihan said net interest income - the difference between what the company earns on loans and pays out on deposits - could hit the upper end of the 6% to 8% range this year.
Bank of America raised its 2026 net interest income growth outlook to 6% to 8%, from 5% to 7% in April.
U.S. banks have benefited from the repricing of fixed-rate assets and securities portfolios over time into higher-yielding assets.
Moynihan said consumer spending and quality remain strong as employment is healthy despite inflationary pressures and higher interest rates.
Total credit and debit card spending per household rose 4.8% in April year-over-year, up from 4.3% in March compared with a year earlier, according to Bank of America internal data.
(Reporting by Saeed Azhar in New York and Utkarsh Shetti in Bengaluru; Editing by Matthew Lewis)
