Bank of America CEO Vows to Address Regulatory Requirements Following Treasury Fine

12:02 PM EDT, 10/14/2026 (MT Newswires) -- Bank of America (BAC) Chief Executive Brian Moynihan said the lender is committed to addressing regulatory requirements, a day after the US Treasury Department penalized it for failing to flag suspected money laundering activities. "We understand the seriousness of compliance and (are) responsible for getting it right," Moynihan said on a third-quarter earnings call with analysts on Wednesday. "The team is far along with, and committed to, completing the work required to be addressed by the regulators." The Treasury on Tuesday announced more than $1.21 billion in penalties for violations of anti-money laundering and sanctions laws. The department said the bank failed to timely report more than $5 billion in suspicious transactions, including over $1 billion involving national security and other illicit finance risks. The lender has invested "billions of dollars" in technology and committed thousands of employees to combat financial crime, Moynihan told analysts, according to a FactSet transcript. "We have a clear understanding of what we need to do," he said. "It is the focus of management to get it cleaned up." Earlier on Wednesday, Bank of America posted net income of $0.91 a share for the September quarter, including a $0.17 hit from the regulatory settlement. The consensus on FactSet was for EPS to increase to $1.10 from $1.04 the year before. Total revenue, comprising of net interest and noninterest income, increased 3% to $29.96 billion, but missed the Street's view for $30.58 billion. Bank of America expects net interest income to improve sequentially in the ongoing quarter and again through next year, "based on anticipated modest loan and deposit growth and continued fixed rate asset repricing," Chief Financial Officer Alastair Borthwick said on the call. Net interest income totaled $16.45 billion in the third quarter. For 2026, the lender continues to target net interest income growth of about 8%, according to Borthwick. The bank anticipates the metric at 8% or higher in 2027, compared with its original 5% to 7% guidance, the CFO added. Discussing the US economy, Bank of America management pointed to a resilient spending environment despite geopolitical uncertainty. "Loan demand and wealth flows all remained healthy," Moynihan said. "We continued to add affluent and high net worth relationships across global wealth and consumer investments." Price: 49.90, Change: -4.07, Percent Change: -7.53