Bank of America's Third-Quarter Profit Falls to $6.9 Billion After a $1.2 Billion Settlement Charge, as Wealth Fees and Net Interest Income Rise

Bank of America reported its third-quarter 2026 results on October 14, and the headline is a profit that fell because of a one-off charge even as most of the bank's businesses grew. Net income was $6.9 billion, or $0.91 per diluted share, after a $1.2 billion charge for a regulatory settlement. Without the charge, the bank said adjusted net income would have been $8.1 billion and adjusted earnings $1.08 per share, which compares with reported earnings of $1.04 per share in the third quarter of 2025. This article draws on Pulse 2.0's summary of the results and on Family Wealth Report's coverage of the wealth arm. We have not reviewed the bank's own earnings release, and the sources do not describe the settlement, so we do not identify the regulator or the matter. All figures are US dollars.

Revenue rose 3% from a year earlier to about $30 billion. The largest driver was net interest income, the difference between what the bank earns on loans and securities and what it pays on deposits, which rose 8% to $16.4 billion. Fee income also grew. Asset management fees climbed 16% to $4.5 billion, and treasury service charges, which come from managing the cash of companies, rose 10%. The 16% growth rate is as given by Pulse 2.0, and readers who need the exact figure should check the bank's release.

The balance sheet shows steady growth. Average loans and leases rose 6% to $1.23 trillion, which the report describes as the tenth consecutive quarter of sequential growth. Average deposits rose 2% to $2.02 trillion, and average global liquidity sources were about $914 billion, a measure of how much cash and easily sold assets the bank holds. The reports reviewed do not give the bank's capital ratio or its provision for credit losses, so we cannot say how much the bank set aside for future loan losses. What they do say is that net charge-offs, the loans written off as uncollectible, fell both from the same quarter a year earlier and from the second quarter of 2026. The credit card charge-off rate improved to 3.22% from 3.46%.

Each business tells a part of the story. Consumer Banking earned $3.5 billion on revenue of $11.6 billion, up 4%. It added more than 200,000 net new checking accounts, bringing the total to 38.9 million, and card spending rose 8% to about $266 billion. Global Wealth and Investment Management, which includes Merrill and the private bank, saw revenue rise 13% to $7.1 billion and net income reach $1.5 billion. Client balances were about $5.1 trillion, and the unit took in $20 billion of net inflows to assets under management. Family Wealth Report's headline put the wealth arm's revenue growth at 13%, in line with the figure above. Global Banking, which serves companies, earned $2 billion; its average deposits rose 6% to $669 billion and average loans 8% to $419 billion. Global Markets, the trading business, reported sales and trading revenue of $5.1 billion and net income of $1.2 billion, with equities revenue up 11% to $2.5 billion.

Shareholders received $8.3 billion during the quarter, made up of $6 billion in share buybacks and $2.2 billion in dividends. Book value per share was $39.26, up 4%, and tangible book value per share was $29.14, up 3%. Chairman and chief executive Brian Moynihan said, 'we are turning our scale into a competitive advantage.' Chief financial officer Alastair Borthwick said, 'Asset quality continued to improve and liquidity and capital remained strong.' Those are management statements, offered with the results.

How should a reader interpret the quarter? The one-off settlement is the reason reported profit fell short of what the underlying business produced, but it is a real cost, and the adjusted figures leave it out by design. Investors usually look at both numbers. Rising net interest income suggests that the bank is earning more from its loan book and from the securities it holds as older low-yielding assets are replaced, though the sources do not explain the cause. The fee growth is tied to markets: asset management fees depend on the value of client assets, which is why a strong stock market lifts them. If markets fall, those fees could weaken.

For ordinary customers, the results mean little day to day. Deposit and loan rates, card terms and fees are set by the bank's pricing and by wider interest rates, not by one quarter's profit. The figures do, however, show households continuing to spend and borrow: card spending was up 8%, and the bank kept growing its checking accounts. They also show credit quality getting better, not worse, which is a positive sign for consumers' ability to repay. This article summarises reported results and is not investment advice. For the settlement, the capital ratio and the provision, readers should consult the bank's earnings release and its filing with the Securities and Exchange Commission.