Bank of America Settlement Charge Hits 3Q, Morgan Stanley Profit Climbs

By WSJ Staff

Bank of America reported a lower profit, mostly tied to a regulatory settlement charge, while Morgan Stanley's overall profit and revenue climbed.

On Tuesday, regulators announced a fine of $1.2 billion against Bank of America after finding that the bank had insufficient systems to monitor and report possible financial crimes.

Bank of America on Wednesday morning said the fine hit its latest third-quarter results by 17 cents a share.

Shares fell 4.3% to $51.65 in premarket trading.

The bank posted a profit of $6.9 billion, or 91 cents a share, for its latest quarter, down from $8.3 billion, or $1.04, a year earlier.

Without the charge, Bank of American reported adjusted earnings of $1.08 a share. Analysts polled by FactSet expected $1.10 a share.

Revenue rose to $30 billion from $29 billion. Analysts expected $30.58 billion in the latest period.

Meanwhile, Morgan Stanley said equity revenue helped drive institutional securities growth while wealth management had robust asset management fees and net interest income climbed.

Overall, the company posted third-quarter net revenue of $20.3 billion, up from $18.2 billion a year earlier. Analysts expected revenue of $19.93 billion in the latest quarter.

Net income climbed to $4.97 billion, or $3.03 a share, in the latest period, up from $4.61 billion, or $2.80, in the year-earlier quarter. Analysts had expected earnings of $2.93 a share in the third quarter.

(END) Dow Jones Newswires

October 14, 2026 07:45 ET (11:45 GMT)