Bank of America on Wednesday posted a sharp profit decline after being hit with a $1.2 billion penalty by U.S. regulators, while revenue also disappointed after trading operations generated about $750 million less than expected.
The bank's third-quarter profit fell 17% to $6.93 billion, or 91 cents a share. Excluding the penalty, which sapped income by 17 cents, EPS would've been $1.08 a share.
Companywide revenue rose 3.2% to $30.12 billion in the quarter, on an FTE basis, but that was below expectations by about $570 million, largely on misses from Wall Street trading operations.
Fixed income trading revenue fell 17% to $2.55 billion on weakness in mortgages, municipals and credit activity. That is roughly $450 million below the StreetAccount estimate.
Equities trading revenue climbed 10% to $2.51 billion, but that was also below analysts' expectations, by nearly $300 million.