BofA (BAC) Q3 2026 Earnings Call Transcript

Bank of America hired 1,000 contractors to fix software vulnerabilities exposed by AI models like Anthropic's Mythos. CEO Brian Moynihan disclosed this during the bank's Q3 earnings call, mentioning a spending of 'couple hundred million plus' on software remediation and AML compliance. The bank's shares fell as much as 8% during the day. Moynihan expects remediation costs to decline over time and sees AI-driven savings rising to $700 million by 2027.

Bank of America (BAC) shares fell 7.14% to $50.105 after earnings showed rising costs outpaced revenue growth. Adjusted efficiency ratio increased to 62% from 60% a year earlier. Revenue rose 3.2% to $29.958B, while costs increased 6.9% to $18.5B. Earnings per share were $0.91, or $1.08 excluding a $1.2B settlement charge.

Morgan Stanley and Bank of America Merrill Lynch reported strong wealth division earnings in Q3. Morgan Stanley's wealth assets grew 57% quarter-over-quarter to $232B, exceeding expectations. Merrill Lynch saw a 13% revenue increase to $7.1B. Both firms faced fixed-income trading declines, with Bank of America also impacted by a $1.2B anti-money laundering fine.

Bank of America reported net charge-offs of $1.349 billion for Q3 2026, slightly lower than $1.367 billion in the same period last year. The figures were disclosed in the company's quarterly update.

Bank of America's stock dropped 9% after admitting AML failures and agreeing to a $1.21B fine. The bank missed earnings estimates. CZ, Binance's ex-CEO, highlighted the double standard after serving prison time for similar AML failures. The Justice Department's 2025 memo may have influenced the lack of criminal charges against Bank of America.

Bank of America stock fell nearly 9% after reporting weak Q3 earnings, including a 17% drop in bond trading revenue and a $1.2B regulatory fine. Total revenue of $30B missed estimates. The fine relates to money laundering and sanctions violations, according to the Treasury Department.