Bank of America Q3 2026: $6.9B Net Income, $1.2B AML Penalty Hits EPS
BAC sits 15% above its 52-week low of $46.115.
Summary
Bank of America's Q3 2026 earnings were solid operationally — revenue up 3%, NII up 8% — but a $1.2 billion AML penalty cut reported EPS to $0.91. Adjusted EPS was $1.08.
Updates
· Dow Jones Newswires — Shares fell 6% to around $51, on pace for largest percent decrease since April 2025, and have lost 20% since August high.
· Benzinga — Bank of America shares fell 5.39% to $51.05 in premarket trading after Q3 adjusted EPS of $1.08 missed the $1.11 consensus and revenue of $29.96B missed the $30.69B estimate.
- Segment Earnings — Consumer Banking net income rose to $3.52 billion from $3.44 billion; Global Wealth and Investment Management earnings climbed to $1.54 billion from $1.27 billion; Global Banking net income declined to $1.99 billion from $2.09 billion; Global Markets earnings fell to $1.24 billion from $1.65 billion.
- Revenue and Spending — Debit and credit card spending increased 8% to $266 billion; noninterest income fell 2.2% to $13.51 billion; revenue weakened in fixed-income businesses, including mortgages, municipal securities and credit.
- Balance Sheet — Average loans and leases increased 6% to $1.23 trillion; average deposits rose 1.54% to $2.02 trillion; CET1 capital ratio declined from 11.6%; book value per share increased to $39.26 from $37.72; tangible book value per share rose to $29.14 from $28.16.
- Credit Quality — Provisions for credit losses remained unchanged at $1.3 billion; Bank of America reported improving asset quality.
- Regulatory and Efficiency — Bank worked with regulators to resolve outstanding issues and completed much work under its consent order; efficiency ratio rose to 66% from 60%.
All 16 details
- Debit and credit card spending increased 8% to $266 billion during the quarter.
- Consumer Banking net income rose to $3.52 billion from $3.44 billion a year earlier.
- Global Wealth and Investment Management earnings climbed to $1.54 billion from $1.27 billion a year earlier.
- Global Banking net income declined to $1.99 billion from $2.09 billion a year earlier.
- Global Markets earnings fell to $1.24 billion from $1.65 billion a year earlier.
- Noninterest income fell 2.2% to $13.51 billion.
- Provisions for credit losses remained unchanged at $1.3 billion.
- Bank worked with regulators to resolve outstanding issues and completed much work under its consent order.
- Efficiency ratio rose to 66% from 60% a year earlier.
- Revenue weakened in fixed-income businesses, including mortgages, municipal securities and credit.
- Average loans and leases increased 6% to $1.23 trillion.
- Average deposits rose 1.54% to $2.02 trillion.
- CET1 capital ratio declined from 11.6% a year earlier.
- Book value per share increased to $39.26 from $37.72.
- Tangible book value per share rose to $29.14 from $28.16.
- Bank of America reported improving asset quality.
· dpa-AFX — Bank of America's Q3 revenue rose 3.2% to $29.958 billion from $29.040 billion last year.
- Reported net income of $6.541 billion for the quarter.
- Reported net income of $7.903 billion for the prior year.
Key Events · Earnings and Guidance · BAC
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Q3 Net Income $6.9B, EPS $0.91
Reported net income of $6.9 billion, or $0.91 per diluted share, down from $8.3 billion and $1.04 EPS in Q3 2025. Excluding the $1.2B regulatory settlement charge, adjusted net income was $8.1 billion, or $1.08 per share.
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$1.2B AML Regulatory Settlement Charge
The OCC and FinCEN consent orders resulted in a non-tax-deductible $1.2 billion charge, reducing EPS by $0.17. This follows the Treasury Department's $1.21 billion penalty announced October 13, 2026.
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Revenue Up 3%, NII Up 8%
Total revenue of $30.0 billion grew 3% YoY. Net interest income of $16.4 billion grew 8%, driven by higher loan and deposit balances and fixed-rate asset repricing. Net interest yield improved 15 bps to 2.16%.
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$8.3B Returned to Shareholders
Bank of America paid $2.2 billion in common stock dividends and repurchased $6.0 billion of common stock during Q3 2026. CET1 ratio of 10.9% remains well above regulatory minimums.
Analysis · BAC · Finance
Bank of America reported Q3 2026 net income of $6.9 billion, or $0.91 per diluted share, down from $8.3 billion a year earlier. The decline was driven by a $1.2 billion non-tax-deductible regulatory settlement charge related to AML and sanctions compliance failures. Excluding that charge, adjusted net income was $8.1 billion, or $1.08 per share. Revenue grew 3% to $30.0 billion, with net interest income up 8% to $16.4 billion. The bank returned $8.3 billion to shareholders through dividends and buybacks. The penalty is a one-time hit, but the underlying business showed solid organic growth across deposits, loans, and wealth management.
How filings like this one have moved
In the 30 days to Oct 29, 2026, 31.1% of the 1661 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was 0.00%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, BAC was trading at $53.25 on NYSE in the Finance sector, with a market capitalization of approximately $377.3B. The 52-week trading range was $46.12 to $65.23. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.