$BAC · BANK OF AMERICA CORP /DE/

Bank of America reported Q3 2026 net income of $6.9 billion ($0.91 per diluted share), down from $8.3 billion ($1.04) in Q3 2025. Results included a $1.2 billion regulatory settlement charge ($0.17/share). Excluding that charge, adjusted net income was $8.1 billion ($1.08 adjusted EPS). Revenue rose 3% YoY to $30.0 billion, with NII up 8% to $16.4 billion. Sales and trading revenue fell 5% to $5.1 billion, with FICC down 17% and Equities up 11%.

Extended-hours trading shows BAC at $51.82, down 3.97% from the regular close of $53.96, indicating a negative initial reaction to the $1.2B regulatory settlement charge and weaker trading revenues.

A $1.2B regulatory settlement charge at America's second-largest bank, combined with a 17% FICC revenue drop, raises questions about both regulatory overhang and trading desk momentum.

BAC's 8% YoY NII growth to $16.4B reflects the rate environment's continued benefit to large U.S. banks, though the 17% FICC decline contrasts with mixed trading results across peers. The $1.2B regulatory charge is a bank-specific headwind.

The $1.2B regulatory settlement charge signals ongoing regulatory exposure. FICC revenue dropped 17% YoY to $2.6B, and investment banking fees fell 11% to $1.8B, highlighting revenue sensitivity to capital markets conditions.