Bank of America stock on track for worst day since 2025 as $1.2 billion fine weighs on Q3 earnings

Key Points:

• Bank of America's stock fell over 6% following a $1.2 billion regulatory penalty related to failures in anti-money laundering safeguards, marking its worst single-day drop since April 2025.
• The bank reported Q3 net income of $6.93 billion ($0.91 per share), missing analyst expectations of $1.10 per share; excluding the penalty, earnings would have been $8.1 billion ($1.08 per share).
• Revenue rose 3% to $30 billion but fell short of the $30.6 billion forecast, with net interest income increasing 8% to $16.4 billion due to higher loan and deposit balances.
• Investment banking fees declined 11% to $1.8 billion, and fixed income trading revenue dropped 17% to $2.6 billion, while equities trading revenue rose 11% to $2.5 billion.
• CFO Alastair Borthwick noted that much of the cost to address regulatory issues is already reflected in operating expenses, and there is no growth restriction tied to the consent order, though the remediation timeline remains uncertain.