Bank of America Stock Falls After Q3 Earnings Miss and $1.2 Billion Penalty

Bank of America Corp. (BAC) posted lower third-quarter net income as a regulatory fine and slower Wall Street activity hurt financial performance. Net income dropped 17 percent to $6.9 billion compared to $8.3 billion in the same period last year. Revenue rose 3 percent to $30 billion, trailing expectations of $30.54 billion.

The quarter included a $1.2 billion penalty to resolve regulatory settlements concerning anti-money laundering and sanctions compliance. Slower capital markets also dragged down results, with investment banking revenue dropping 11 percent to $1.8 billion and sales and trading revenue falling 5 percent to $5.1 billion. However, the bank's core lending business remained resilient, as net interest revenue surged 8 percent to $16.4 billion.

Investors will be watching whether deal making and trading operations can regain momentum in coming quarters. A rebound in Wall Street activities could help offset non-recurring regulatory costs and support future profit growth.