Why it matters
- Bank of America reported third-quarter net income of $6.9 billion, or $0.91 a diluted share, on Wednesday, Oct. 14, down from $8.3 billion, or $1.04 a share, a year earlier, the bank said.
- Results included a $1.2 billion regulatory settlement charge, or $0.17 a share, tied to consent orders with the OCC and FinCEN. Excluding it, the bank said it earned $8.1 billion, or $1.08 a share.
- Bank of America shares traded at about $50.36 at 8:54 a.m. ET, down about 6.7% from Tuesday's close of $53.96, according to Yahoo Finance data.
Bank of America said Wednesday, Oct. 14, that its third-quarter profit fell to $6.9 billion, or $0.91 a diluted share, from $8.3 billion, or $1.04 a share, a year earlier, after a $1.2 billion regulatory settlement charge. Revenue, net of interest expense, rose 3% to $30.0 billion, the bank said in its earnings release.
Bank of America shares traded at about $50.36 in premarket trading at 8:54 a.m. ET, down about 6.7% from Tuesday's close of $53.96, according to Yahoo Finance data.
What is Bank of America's $1.2 billion charge?
It covers civil money penalties. On Oct. 13, the Office of the Comptroller of the Currency and the Financial Crimes Enforcement Network (FinCEN) announced that Bank of America consented to orders related to parts of its U.S. Bank Secrecy Act, anti-money laundering and economic sanctions compliance programs, the bank said. It recorded $1.2 billion of noninterest expense, which is not tax deductible, to accrue for the penalties.
Excluding the charge, Bank of America said adjusted net income was $8.1 billion and adjusted earnings were $1.08 a share. Those adjusted figures are non-GAAP measures.
Bank of America Q3 2026 results at a glance
| Measure | 3Q 2026 | 3Q 2025 |
|---|---|---|
| Revenue, net of interest expense | $30.0 billion | $29.0 billion |
| Net income | $6.9 billion | $8.3 billion |
| Diluted EPS | $0.91 | $1.04 |
| Noninterest expense | $19.7 billion | $17.3 billion |
| Provision for credit losses | $1.3 billion | $1.3 billion |
Source: Bank of America third-quarter 2026 earnings release.
How did Bank of America's businesses perform?
Lending income rose while trading and dealmaking slipped, the bank said.
- Net interest income: $16.4 billion, up 8%, driven primarily by higher loan and deposit balances.
- Sales and trading: $5.1 billion, down 5%. Fixed income, currencies and commodities revenue fell 17% to $2.6 billion, while equities revenue rose 11% to $2.5 billion.
- Investment banking fees: $1.8 billion, down 11%.
- Wealth management: Global Wealth and Investment Management revenue rose 13% to $7.1 billion.
Average loans and leases rose 6% to $1.23 trillion and average deposits rose 2% to $2.02 trillion. The bank said it returned $8.3 billion to shareholders through dividends and share buybacks.
What did Morgan Stanley report?
Morgan Stanley also reported Wednesday, posting net income of $4.9 billion, or $3.03 a diluted share, up from $2.80 a year earlier, on net revenues of $20.3 billion, up from $18.2 billion, the firm said. Its shares traded at about $182.82 at 8:54 a.m. ET, down about 2% from Tuesday's close of $186.64, Yahoo Finance data show.
For Tuesday's bank results, see Goldman Sachs' third-quarter earnings and Wells Fargo's third-quarter results. For the inflation report out this morning, see September CPI. More earnings coverage is in our companies section.
Sources
- Bank of America, Third Quarter 2026 earnings press release (Exhibit 99.1 to Form 8-K, Oct. 14, 2026)
- Morgan Stanley, Third Quarter 2026 Earnings Results (Exhibit 99.1 to Form 8-K, Oct. 14, 2026)
- Yahoo Finance, chart data for Bank of America (BAC) and Morgan Stanley (MS)
