(Bloomberg) -- Bank of America Corp. won't cut jobs in its investment banking unit despite the recent slowdown and plummeting fees tied to deals, according to Chief Financial Officer Alastair Borthwick.
The bank isn't planning reductions "at this stage," Borthwick said on a call following third-quarter results. The firm continues to invest in its people to help capture market share, he said.
Investment banking at Bank of America declined 46% in the three months through Sept. 30, better than the 47% drop analysts were expecting as the market tumult that drove up trading also muted dealmaking. Across the street, investment banking revenues have slumped, with a dearth in equity and debt underwriting crimping results.
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Morgan Stanley Chief Executive Officer James Gorman hinted during the bank's earnings last week that job cuts might be coming as senior executives assess headcount. Last month, Goldman Sachs Group Inc. CEO David Solomon resumed the firm's practice of periodically culling underperformers to make way for fresh talent.
Bank of America is continuing to add salespeople and specialists to help serve consumer clients, Borthwick said. The company has been adding staff to its global banking arm as well as its risk and control teams. That pushed overall headcount up by 4,000 during the quarter.
The company is not "immune to inflation" but expects expenses to remain flat for the year, according to Borthwick. That's due to the push to digital sales and experiences, which result in savings and has been a benefit from a risk and controls perspective, he said.
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