Bank of America (BAC) Q3 2026 earnings
Bank of America reported a 17% decline in third-quarter profit, impacted by a $1.2 billion regulatory penalty and weaker-than-expected trading revenue. Shares fell nearly 5% as analysts questioned the firm's internal controls and market performance.
Why it matters
The earnings miss and regulatory issues highlight potential operational risks at one of the world's largest financial institutions.
Bank of America on Wednesday posted a sharp profit decline after being hit with a $1.2 billion penalty by U.S. regulators, while revenue also disappointed after trading operations generated about $750 million less than expected.
Shares of the bank fell almost 5% on Wednesday.
The bank's third-quarter profit fell 17% to $6.93 billion, or 91 cents a share. Excluding the penalty, which sapped income by 17 cents, EPS would've been $1.08 a share.
Companywide revenue rose 3.2% to $30.12 billion in the quarter, on an FTE basis, but that was below expectations by about $570 million, largely on misses from Wall Street trading operations.
Fixed income trading revenue dropped 17% to $2.55 billion on weakness in mortgages, municipals and credit activity. That is roughly $450 million below the StreetAccount estimate.
Equities trading revenue climbed 10% to $2.51 billion, but that was also below analysts' expectations, by nearly $300 million.
Also covering this story
4 other newsrooms covered this event. We read each version separately.
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