Bank of America Shares Plunge 7% After $1.2 Billion Regulatory Fine
Bank of America shares dropped over 7% after reporting a 17% profit fall due to a $1.2 billion regulatory fine. Meanwhile, Morgan Stanley and BlackRock beat expectations.
Bank of America shares plunged more than 7% on Wall Street after the bank reported a 17% drop in third-quarter profit compared to the same period last year. The results were heavily impacted by a $1.2 billion regulatory fine. The stock is on track for its sharpest daily decline since April 2025 and the steepest drop following earnings since March 2020.
Financial Results and Regulatory Fine
The second-largest bank in the US reported a net profit of $6.93 billion for the quarter, or $0.91 per share, compared to the $1.10 per share expected by analysts. Excluding the fine, profit stood at $8.1 billion, or $1.08 per share. Revenues rose 3% to $30 billion, compared to an average forecast of about $30.6 billion.
US regulators hit the bank, headquartered in Charlotte, North Carolina, with $1.2 billion in fines over widespread failures in anti-money laundering controls and other illicit financial activities.
"While investment banking and trading revenues declined, commercial credit grew across all customer segments," said Bank of America CEO Brian Moynihan.
Performance of Morgan Stanley and BlackRock
Two other financial giants also released their reports, showing mixed results across Wall Street.
Morgan Stanley posted third-quarter results that beat analyst expectations, reporting a profit of $3.03 per share and revenues of $20.34 billion, compared to estimates of $2.91 per share and $19.95 billion. Meanwhile, BlackRock shares rose about 3% after the New York-based asset manager reported third-quarter earnings and revenue above expectations, fueled by strong net inflows of $205.5 billion.
