Bank of America Reports Q3 Revenue of $30.0B, Hit by $1.2B Regulatory Charge
Net income fell to $6.9 billion, or $0.91 per share, due to a $1.2 billion regulatory settlement. Excluding the charge, adjusted EPS rose to $1.08 as net interest income grew 8%.
What they reported
- Revenue net of interest expense grew 3% year-over-year to $30.0 billion for the quarter ending September 30, 2026.
- Net interest income (NII) rose 8% year-over-year to $16.4 billion, driven by loan and deposit growth and fixed-rate asset repricing.
- Net income fell to $6.9 billion, or $0.91 per share, down from $8.3 billion, or $1.04 per share, in the year-ago quarter.
- A $1.2 billion regulatory settlement charge reduced EPS by $0.17. Excluding this charge, adjusted net income was $8.1 billion with adjusted EPS of $1.08.
Against the forecast and a year ago
- Total revenue of $30.0 billion increased from $29.0 billion in the year-ago quarter.
- Provision for credit losses remained flat year-over-year at $1.3 billion.
- Noninterest expenses rose by $2.4 billion to $19.7 billion, though adjusted noninterest expenses were lower at $18.5 billion.
- No consensus forecast was available in the historical records to compare against.
What management said
CEO Brian Moynihan noted that the team delivered organic growth, deepened client relationships, and expanded commercial lending across every segment. He also highlighted disciplined investments in AI, stating that more than 200,000 teammates are using AI tools across 300-plus approved use cases.
What to watch next
- FICC sales and trading performance, which fell 17% to $2.6 billion, contrasting with Equities revenue which rose 11% to $2.5 billion.
- Investment banking fees, which declined 11% to $1.8 billion.
- Expense management, as noninterest expenses rose to $19.7 billion, pushing the efficiency ratio to 66% (or 62% on an adjusted basis).