Bank of America Shares Drop on Earnings Miss and $1.2 Billion Fine
On October 14, Bank of America (BAC) shares fell nearly 5% after the company reported third-quarter earnings that missed expectations and announced a $1.2 billion fine from the U.S. Treasury Department for violating anti-money laundering laws. The penalty reduced BofA's quarterly EPS by $0.17, but even excluding this impact, its actual EPS of $1.08 still fell short of Wall Street forecasts. Despite early losses exceeding 9%, Bank of America shares partially recovered during the day to close down about 4.76%. The bank reported mixed results across business lines: net interest income rose by 8%, consumer banking revenue increased by 4%, and wealth management revenue surged 13%. However, investment banking fees dropped 11%. The S&P 500 fell over 1%, while the Nasdaq Composite declined nearly 2%. Other large banks like JPMorgan Chase (JPM) saw gains. Management raised its guidance for net interest income growth in 2027 to 8% from a previous range of 5-7%.
Topics: Bank of America Earnings Report Regulatory Fine Stock Performance
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