Bank of America expects 2027 NII to rise 8% or more as it embeds $1.2B regulatory settlement costs (NYSE:BAC)

Major U.S. banks reported mixed Q3 results, with all six stocks falling despite some strong performances. Wells Fargo beat earnings but missed revenue, while JPMorgan missed expectations but offered better forecasts. Citigroup had strong revenue growth but shares dropped. Bank of America missed targets and faced a regulatory penalty. Goldman Sachs and Morgan Stanley beat expectations but shares declined. Cramer noted investor concerns about future economic conditions.

Bank of America reported Q3 2026 net income of $6.9B, or $0.91 per share, despite a $1.2B regulatory charge. Revenue grew 3% YoY to $30B, driven by 8% NII growth. The bank returned $8.3B to shareholders via dividends and buybacks. BAC's dividend yield is 2.13% with a 25% payout ratio and 7.9% 3-year growth. Its GF Score is 82, with strengths in growth and momentum but weak financial strength. Insiders sold $31.1M in shares over the past year, while 34 gurus hold BAC, with 28 trimming positions.

Bank of America (BAC) shares fell 4.76% to $51.39 after missing Q3 earnings estimates and a $1.2B compliance penalty. EPS was $1.08, missing estimates by $0.02. Trading volume was 115.1M, 226% above average. Mixed results included 8% NII growth and 13% wealth management revenue increase, but 6% drop in global markets revenue. Management raised 2027 NII growth guidance to 8%.

Bank of America (BAC) reported Q3 2026 earnings, highlighting $34B in loan growth, $6B in share buybacks, and a 10.9% CET1 ratio. Management expects 8% NII growth in 2027, driven by deposit and loan growth. CEO Brian Moynihan noted strong consumer spending and credit quality, while CFO Alastair Borthwick discussed capital management and regulatory matters. The bank anticipates continued expense discipline and growth in fee businesses.

Bank of America's stock fell 4.76% after hours due to a $1.21 billion fine, while chip stocks also declined. The broader market saw the Nasdaq and S&P 500 fall for the third consecutive session following hot CPI data.

Bank of America's Q3 2026 earnings showed strength in consumer, wealth, and commercial businesses, offsetting weaker investment banking and FICC trading. Net interest income rose 15 bps YoY to 2.16%, and the bank added 200,000 new checking accounts. Management raised 2027 NII growth guidance to 8%+, assuming rate hikes. A $1.2B regulatory settlement charge impacted EPS by $0.17, but management expects operating leverage to return in Q4 2026.