*

Expects trading revenue to grow mid-to-high single digit

in Q2

*

Consumer spending, credit quality remains strong

*

Investment banking fees expected up to $1.2 billion, below

Q2

2024

(Adds comments on net interest income in paragraph 6, consumer

spending in paragraph 8 and stablecoins in paragraphs 9-11)

By Saeed Azhar and Arasu Kannagi Basil

NEW YORK, June 11 (Reuters) - Bank of America ( BAC )

expects its trading revenue to grow by a mid-single-digit

percentage this quarter, the 13th consecutive gain, CEO Brian

Moynihan said on Wednesday.

By contrast, investment banking fees are likely to fall to

about $1.2 billion in the second quarter from $1.6 billion a

year earlier, he told investors at a conference. That is "not

where we want to be, but great prospects, great conversations,"

Moynihan said.

Dealmaking has slowed this year as U.S. President Donald

Trump's tariffs on trading partners fanned turmoil in markets

and sparked concerns about slowing economic growth.

Still, banking executives have expressed optimism about a

recovery in investment banking while noting their trading

divisions have cashed in on volatile markets.

Morgan Stanley ( MS ) CEO Ted Pick told investors on Tuesday

he expected a strong finish this quarter, while Citigroup's ( C/PN )

head of banking Vis Raghavan said performance in its

banking and trading divisions will improve.

Moynihan reiterated the bank's guidance for growth in net

interest income this year. The lender earlier projected its NII

- the difference between what it earns on loans and pays out for

deposits - to climb to a range of $15.5 billion to $15.7 billion

by the fourth quarter, versus $14.6 billion in the first.

BofA's earnings per share are expected to rise to 90 cents

in the second quarter from 83 cents a year earlier, as it brings

in more income from interest payments, according to LSEG

estimates.

Consumers are spending on travel and entertainment, and

credit quality is strong, Moynihan said, as clients pay off

debts on time. But he cautioned small businesses are more

affected by uncertainty over the tariffs.

Separately, BofA is working independently and with other

industry participants on a stablecoin - a type of cryptocurrency

designed to maintain a stable value relative to a reference

asset, such as the dollar.

"We've not been quite sure how big it will be, but we have

to be ready," Moynihan said.

Federal legislation currently before the Senate that would

establish rules around stablecoins "will allow us to figure out

whether there's really a business proposition," he added.

Big U.S. banks are holding internal discussions about

expanding into cryptocurrencies as they get stronger

endorsements from regulators, but initial steps will be

tentative, centering on pilot programs, partnerships or limited

crypto trading, Reuters reported in May.