Bank of America missed Wall Street expectations for revenue and profit in the third quarter of 2026, according to financialcontent.com. Revenue rose 3.1% year on year to $30.11bn.
Revenue compared with analyst estimates of $30.56bn, a 1.5% miss. Adjusted earnings per share were $1.08 against expectations of $1.10, which put them 2% below the analyst consensus.
Management attributed the shortfall mainly to a $1.2bn regulatory settlement charge and a decline in fixed income, currency and commodities trading. The charge relates to an anti-money laundering compliance settlement, and the bank said remediation costs are now embedded in ongoing expenses.
Sales and trading revenue fell on lower client activity in fixed income, credit and municipal trading, partly offset by record equities performance. Chief executive Brian Moynihan acknowledged the seriousness of the compliance issues. "We understand the seriousness of compliance, and we are responsible for getting it right," he said.
Chief financial officer Alastair Borthwick said the bank expects net interest income to improve sequentially in the fourth quarter and again through 2027. The shares trade at $51.45, down from $53.87 just before the results.
Elsewhere in the results, wealth management drew about $41bn of net flows, and client balances passed $5tn for the first time. The bank's market capitalisation is $355.8bn.
Related: Bank of America profit fell as settlement charge offset revenue growth