Bank of America shares fell more than 7% in premarket trading Wednesday after the bank reported weaker-than-expected third-quarter revenue and a $1.2 billion regulatory penalty.
Trading operations weighed on results. Fixed-income revenue fell 17% to $2.55 billion, while equities trading revenue increased 10% to $2.51 billion. Both figures fell short of analysts’ estimates. Investment banking revenue dropped 11% to $1.8 billion.
Net interest income, a key measure of banking profitability, rose 7.9% to $16.6 billion.
The penalty followed regulators’ findings that the bank failed to report billions of dollars in suspicious transactions, raising questions about its risk-management controls under CEO Brian Moynihan.
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Bank of America posted sharply lower profit after a $1.2 billion Treasury penalty: The second-largest U.S. bank admitted to willfully violating anti-money-laundering laws and failing to report over $5 billion in suspicious transactions dlvr.it/TVvqc6 https://t.co/0lNlP282Rx
— Quartz (@qz) October 14, 2026
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