Bank of America 8-K
EarningsNew guidanceImpairment / chargeLegal / investigation
OCC and FinCEN settlement over AML and sanctions compliance hit earnings despite stronger net interest income.
Filed 2026-10-14 06:44 ET
- 2.02 Results of Operations
- 7.01 Regulation FD Disclosure
- 9.01 Financial Statements and Exhibits
Summary
Q3 2026 results with a $1.2B regulatory settlement charge. Bank of America reported $6.9B net income and $0.91 diluted EPS; excluding the charge, non-GAAP net income was $8.1B and diluted EPS was $1.08. Revenue grew 3% Y/Y, supported by higher net interest income and asset management fees, partly offset by lower sales and trading revenue and investment banking fees. The charge followed OCC and FinCEN consent orders concerning aspects of the bank’s anti-money laundering and economic sanctions compliance programs.
Key Figures
| Metric | Q3 2026 | 9M 2026 |
|---|---|---|
| Revenue, net of interest expense | $30.0B, +3% Y/Y | $91.8B, +8% Y/Y |
| Net income | $6.93B, −17% Y/Y | $24.6B, +8% Y/Y |
| Non-GAAP adjusted net income | $8.1B | — |
| Diluted EPS | $0.91, −13% Y/Y | $3.23, +14% Y/Y |
| Non-GAAP adjusted diluted EPS | $1.08 | — |
- Regulatory settlement charge: $1.2B, non-tax-deductible, reducing diluted EPS by $0.17. Excluding it, the efficiency ratio was 62% vs 66% reported; adjusted return on average tangible common shareholders’ equity was 14.9% vs 12.6% reported.
- Net interest income rose 8% Y/Y to $16.4B; net interest yield increased 15 bp to 2.16%. Higher loan and deposit balances, Global Markets activity and fixed-rate asset repricing supported the increase.
- Returned $8.3B to shareholders: $2.2B in dividends and $6.0B in repurchases. Common shares outstanding fell to 6.92B from 7.33B Y/Y. The standardized CET1 ratio was 10.9%, down from 11.6%; the net charge-off ratio improved to 0.44% from 0.47%.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Pretax net interest income sensitivity | 12 months from 9/30/2026 | At +100 bp vs the forward curve: +$1.4B; at −100 bp: $(1.9)B | — | — |
Investor Takeaways
- Next-quarter net interest income and net interest yield will show whether the growth and margin gains persist.
- Credit quality remains a key measure to track, including whether the net charge-off ratio stays near or below 0.44%.
The summary is written by an AI model reading the filing.
Model 005 · prompt 8bef31e277 · 2026-10-14 14:32:47Z