According to a forecast published by Bank of America (BoFA), the investment bank could earn $1.76 per share, a figure which is down from the $3.57 predicted earlier in the year.
Estimates for the total annual EPS fell from $19.37 to $17.12 with the analyst blaming a decline in the bankâs trading environment.
The figures are thought to indicate a 45 per cent dip in equity trading revenue and a 40 per cent fall in fixed-income trading revenue from the first quarter.
In the note, the analyst which was quoted by Bloomberg said: âVolumes in Treasuries and other low-risk instruments jumped but higher risk and higher margin activity declined.
âMeanwhile, a spike in equity volatility and lower market values contributed to a challenging equity trading environment, particularly in derivatives.â
Further findings from the BoFA report showed that estimates for the EPS of other financial institutions were also cut.
Morgan Stanley, Citigroup and JPMorgan were among the other banks to see their forecasts dip.
By Jim Ottewill