Bank of America misses profit estimates on capital market weakness; books US$1.2 billion charge
The fine stems from BofA’s failure to report over US$5 billion in suspicious activity to the US government
Bank of America reported a decline in third-quarter profit, missing estimates due to weakness in its capital markets business. The bank disclosed a US$1.2 billion charge related to a regulatory penalty for failing to report over US$5 billion in suspicious activity to the US government. Shares of BofA fell 4.2 per cent in premarket trading, adding to a 1.9 per cent decline this year.
The capital markets momentum has slowed down after a strong first half of the year, with bond market selloffs driving yields to multi-decade highs. BofA's sales and trading revenue fell 5 per cent to US$5.1 billion, while investment banking fees dropped 11 per cent to US$1.8 billion. The bank's profit for the quarter was US$6.9 billion, or 91 cents per share, compared to US$8.3 billion, or US$1.04 per share, a year earlier.
Brief written by urgent.news from The Business Times - Companies & Markets's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
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