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Bank of America posts third-quarter profit drop due to $1.2 billion Treasury fine

Wednesday 14 October12:06 · 1h agoAI summary
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Bank of America’s third-quarter profit fell 17% after a $1.2 billion Treasury penalty, while revenue also came in below expectations.

01Summary

  1. 01Bank of America reported third-quarter profit of $6.93 billion, or 91 cents a share, down 17% from a year earlier.
  2. 02The U.S. Treasury Department said on Tuesday that it had fined the bank $1.2 billion.
  3. 03Excluding the penalty, earnings per share would have been $1.08, the bank said.
  4. 04Revenue rose 3.2% to $30.12 billion, about $570 million below expectations, mainly because of weaker Wall Street trading results.
  5. 05Regulators said the bank failed to report billions of dollars in suspicious transactions.

02Why it matters

The fine raises fresh questions about Bank of America’s controls and risk management at one of the biggest US banks. It also hits earnings and may affect how investors view management in the next results season.

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