Bank of America reports third-quarter 2026 profit cut by $1.2 billion settlement charge

Bank of America posted third-quarter 2026 net income of $6.9 billion, or $0.91 a diluted share, down from $8.3 billion, or $1.04 a share, a year earlier. The figures absorb a $1.2 billion regulatory settlement charge (about $0.17 a share) tied to the October 13 consent orders with the Treasury's FinCEN and the OCC. Excluding that charge, adjusted earnings were $8.1 billion, or $1.08 a share. Revenue, net of interest expense, rose 3% to $30.0 billion, helped by a rise in net interest income of 8% to $16.4 billion and higher asset management fees. Sales and trading revenue fell 5% to $5.1 billion, with fixed income down 17%, and investment banking fees dropped 11% to $1.8 billion. Average loans grew 6% to $1.23 trillion and average deposits reached $2.02 trillion. Credit quality improved, with the net charge-off ratio at 0.44%, and the allowance for loan and lease losses fell to 1.04% of loans. The CET1 ratio on the standardized approach slipped to 10.9% from 11.6% a year earlier, and the company returned $8.3 billion to shareholders in the quarter through $2.2 billion of dividends and $6.0 billion of buybacks.

1. Q3 2026 net income $6.9 billion, diluted EPS $0.91, versus $8.3 billion and $1.04 in Q3 2025 (company release dated October 14, 2026).
2. Regulatory settlement charge of $1.2 billion, or $0.17 per share, recorded as non-tax-deductible noninterest expense.
3. Adjusted net income $8.1 billion, adjusted EPS $1.08; consensus had been about $1.10 to $1.11.
4. Revenue, net of interest expense, $30.0 billion, up 3% year over year; net interest income $16.4 billion, up 8%.
5. Sales and trading revenue $5.1 billion, down 5%; FICC down 17% to $2.6 billion; equities up 11% to $2.5 billion.
6. Investment banking fees (excluding self-led) $1.8 billion, down 11%.
7. CET1 ratio 10.9% (standardized) versus 11.6% a year earlier; book value per share $39.26; tangible book value per share $29.14.
8. Capital returned in the quarter: $8.3 billion, including $2.2 billion in dividends and $6.0 billion in repurchases.