Bank of America Hit With $1.2 Billion Fine as Third-Quarter Profit Takes a Charge

Federal regulators fined Bank of America more than $1.2 billion over failures in its anti-money-laundering and illicit-finance safeguards. The company booked the settlement in its third-quarter results, cutting reported net income to $6.9 billion, or $0.91 per share. Excluding the charge, adjusted net income was $8.1 billion, or $1.08 per share.

Revenue was $30.0 billion, up 3% from a year earlier, with net interest income up 8% to $16.4 billion. Global Markets sales and trading revenue fell 5% to $5.1 billion, as fixed income dropped 17% while equities rose 11%.

Shares fell more than 5% in premarket trading. Elsewhere in financials, BlackRock rose after beating estimates, while State Street dropped after missing revenue forecasts.