BofA Earnings Take $1.2 Billion Hit as Bond-Trading Revenue Falls 17%
Updated
Updated · Bloomberg · Oct 14
BofA Earnings Take $1.2 Billion Hit as Bond-Trading Revenue Falls 17%
3 articles · Updated · Bloomberg · Oct 14
Summary
$1.2 billion in regulatory charges tied to money-laundering and sanctions violations weighed on Bank of America’s latest results, while its shares slumped after the report.
Bond-trading revenue dropped 17% to $2.55 billion and missed estimates, while equity trading rose 10% to $2.51 billion but still failed to offset weaker overall trading performance.
The trading shortfall and penalty helped drive a 17% decline in third-quarter profit to $6.93 billion, with revenue of $30.12 billion also coming in below expectations.
US regulators imposed the penalty a day earlier over broad anti-money-laundering and illicit-finance control failures, though the bank said no growth restriction was attached.