Bank of America Shares Drop After Earnings Miss and $1.2 Billion Fine
Shares of Bank of America (BAC) fell sharply on Wednesday, dropping as much as 8.7% before closing with a 4.7% decline following disappointing earnings results and news of a regulatory fine. The bank reported third-quarter revenue of $30 billion, up 3.4%, but adjusted EPS came in at $1.08, missing analyst expectations despite excluding the impact of the recent $1.2 billion settlement with regulators over failure to monitor suspicious transactions. The investment banking and sales & trading segments were particularly weak, down 11% and 5%, respectively. The fine from FinCEN relates to Bank of America's alleged oversight in reporting around $5 billion in suspect financial activity, including some tied to national security risks. Despite the setbacks, analysts noted that core lending fundamentals remain stable with flat credit-loss provisions.
Tickers: $BAC
Topics: banking financial_reporting regulation
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