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Bank of America reported weaker third-quarter earnings as declining capital markets revenue and a $1.2bn regulatory penalty weighed on results. The bank earned $6.9bn, or 91 cents per share, down from $8.3bn a year earlier. Excluding the penalty, earnings reached $1.08 per share, below analysts' $1.10 forecast. Sales and trading revenue declined 5% to $5.1bn, while investment banking fees dropped 11% to $1.8bn amid challenging bond market conditions and reduced deal activity. The regulatory settlement followed failures to report more than $5bn in suspicious transactions, prompting additional government oversight and requirements to strengthen anti-money-laundering controls. Bank of America must work with an independent third party to identify previously undetected activity. Shares fell 4.2% in premarket trading as investors assessed weaker performance, regulatory expenses and potential ongoing compliance costs.
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