Bank of America CEO sees net interest income moving up the ladder from $14.3B in Q4

Bank of America (NYSE:BAC) Chairman and CEO Brian Moynihan feels good about net interest income reaching $14.3B in Q4, vs. $14.1B in Q3 and $13.9B in Q2, he said at the Goldman Sachs U.S. Financial Services Conference on Wednesday.

“But the important thing is we look at next quarter, you see another move up the steps,” he said. “What you’re seeing now is just quarterly progression up the ladder. And that number will continue to go up.”

That’s due to a couple of factors. The company is expecting loan growth of over 4% in Q4, better than the industry, with the commercial side doing a little better than that. In addition, he’s expecting deposits to rise about $30B in Q3, marking its sixth straight quarter of growth. Just as important, though, high-cost deposits are running off.

“The rate structure we have, it basically follows the market,” Moynihan said. “So our view is that we’ll see good increases sequentially every quarter for next year and just keep building on that ladder.”

Wealth management fees in Q4 should be up 20% Y/Y, and investment banking fees are expected to increase 25% Y/Y. Trading revenue will likely be up mid-single to high-single digits from last year, logging in a record Q4, he said.

Credit costs are expected to be flattish, he added.

Bank of America (NYSE:BAC) stock rose 0.7% in late Wednesday trading.