Bank of America Earnings Dip After $1.2 Billion Regulatory Fine

Bank of America recorded a quarterly profit of $6.9 billion, or 91 cents a share, failing to match the $8.3 billion reported during the same period last year. Excluding the impact of the settlement, the bank’s adjusted earnings reached $1.08 a share, falling short of the $1.10 consensus estimate from FactSet analysts. Revenue climbed to $30 billion, though this figure still trailed the $30.58 billion anticipated by Wall Street. Following the news, shares dropped 4.3% to $51.65 in premarket trading.

In contrast, Morgan Stanley demonstrated growth across its primary business lines. The firm reported net revenue of $20.3 billion, surpassing the projected $19.93 billion. Gains were largely driven by robust equity revenue in institutional securities and a combination of asset management fees and higher net interest income within its wealth management division. Net income for the firm rose to $4.97 billion, or $3.03 a share, comfortably beating the $2.93 per-share forecast set by analysts.