Bank of America shares flat after earnings-driven sell-off, slide over 20% from recent peak
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Bank of America shares traded flat on Thursday after a 5% earnings-led crash.
- ✓Profits fell over 15% in the third quarter as the bank took a $1.2 billion hit from regulatory fines.
- ✓While trading results were weak, loan balances increased 6.3% to $1.23 trillion, meeting many analyst expectations for growth.
Story at a Glance
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- MARKET
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- Livemint
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- 3 Minute(s)
- Market Focus
- India Economy
After a 5% earnings-led crash in the previous session, shares of Bank of America (BofA) were trading flat in pre-market trading on Thursday. Profits at the second-largest US bank fell more than 15% in the third quarter after it took a $1.2 billion hit from a regulatory fine related to money laundering and sanctions violations.
The company announced a $1.2 billion non-tax-deductible charge related to the fines. The US Treasury Department said on Tuesday that the bank had effectively outsourced a key part of its compliance efforts as it sought to protect revenue.
BofA said the costs of remediating the issues were already factored into its expenses.
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