Bank of America reported third-quarter net income of $6.9 billion, or $0.91 per diluted share, after a $1.2 billion regulatory settlement charge. Excluding that charge, the bank said adjusted net income was $8.1 billion and adjusted earnings were $1.08 per share. Revenue, net of interest expense, rose to $29.96 billion. Net interest income increased 8% to $16.45 billion.
The settlement followed coordinated US actions concerning anti-money-laundering and sanctions controls, which the bank disclosed before its earnings release. The financial results therefore provide a distinct milestone from the enforcement event. Bank of America said average loans and leases grew 5% from a year earlier. Its common equity tier one ratio was 10.9% at quarter-end.
TRADING MIX SHIFTS
Sales and trading revenue fell 5% to $5.1 billion. Fixed-income trading revenue declined 17%, while equities revenue increased 11% to $2.5 billion. The split showed that stronger equity activity did not fully offset weaker fixed-income performance.
Investment-banking fees fell 11% to $1.8 billion. The decline contrasted with the growth in net interest income and average lending, leaving the quarter more dependent on spread income than on advisory and underwriting activity.
SETTLEMENT CLOUDS COMPARISON
The regulatory charge reduced reported earnings but did not affect the bank's adjusted figures. That distinction is important when comparing the quarter with peer results and assessing the underlying movement in revenue and credit. The bank's capital ratio remained above its regulatory minimum.
Investors will next focus on whether loan growth and net interest income can continue to offset softer fee businesses. They will also watch the bank's implementation of the remediation required under the regulatory settlements and any associated operating costs.