Stock Market Today, Oct. 14: Bank of America Shares Fall 5% on Earnings Miss and Compliance Penalty

Bank of America reported Q3 2026 net income of $6.9B, EPS of $0.91. The bank expects 2027 net interest income to rise 8% or more, factoring in $1.2B in regulatory settlement costs. According to CEO Brian Moynihan, results were adjusted for non-tax deductible settlements.

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.

Bank of America (BAC) shares fell 4.7% after missing earnings expectations and announcing a $1.2B fine for regulatory failures. Q3 revenue grew 3.4% to $30B, while adjusted EPS rose 3.8% to $1.08, both below estimates. Investment banking revenue declined 11%, and sales and trading fell 5%.

Bank of America reported Q3 2026 net income of $6.9B, EPS of $0.91, with adjusted net income of $8.1B. Consumer spending and loan growth were strong, but sales and trading revenue declined. A $1.2B regulatory settlement charge impacted earnings. Wealth management and digital adoption saw growth, while expenses increased. Management expects positive operating leverage in Q4 and discussed capital management and regulatory impacts.