Bank of America shares fell 4.7% on Oct. 14, their worst performance in 18 months, after weak third-quarter results and a $1.2 billion fine from banking regulators for failing to report over $5 billion in suspicious transactions. The bank earned $0.91 per share on $30.12 billion in revenue, below estimates; excluding the fine, EPS would have been $1.08, missing by only $0.02. Investment banking fees fell nearly 16% year over year, but net interest income rose $1.2 billion to $16.6 billion, and the CFO expects it to grow about 8% in 2026. Management said remediation costs of a couple hundred million dollars or more were booked this quarter. The author views the stock, trading at about 1.76 times tangible book value, as a reasonable long-term holding for diversification despite its disappointing performance over the past five years.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: Should You Buy Bank of America Stock After a $1 . 2 Billion Regulatory Fine ?
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