Bank of America (BAC) has reported financial results for this year’s third quarter that fell short of expectations due a $1.2 billion U.S. fine from the U.S. Treasury Department.
The lender posted earnings per share (EPS) of $0.91 U.S., which missed Wall Street’s forecast of $1.10 U.S.
Revenue in the July through September period totaled $30 billion U.S., which was below the consensus estimate of $30.69 billion U.S. Sales were up 3.2% from a year earlier.
In its earnings statement, Bank of America said that the $1.2 billion U.S. fine from the Treasury knocked $0.17 U.S. of its net income.
The fine was due to Bank of America allegedly violating anti-money laundering and sanctions laws.
In announcing the fine, the Treasury Department said that Bank of America admitted to violating the Bank Secrecy Act and failing to report more than $5 billion U.S. in suspicious transactions.
The fine, which came as a surprise, raises question about whether Bank of America CEO Brian Moynihan has a handle on controls at the second-largest U.S. lender.
Moynihan has run Bank of America since 2010 and spent years fixing mortgage-related abuses in the aftermath of the 2008 financial crisis.
Now, risk-management issues have resurfaced at the bank.
Beyond the fine, which overshadowed the financial results, Bank of America’s profit fell 17%. Management said trading operations, which include stocks and bonds, struggled in Q3.
BAC stock has declined 4% this year to trade at $53.96 U.S. per share.
