BofA’s Q3 trading revenue fell short of estimates: fixed-income trading revenue
declined 17% to $2.55bn and equities trading revenue fell 10% to $2.51bn, both
below analysts’ expectations. The bank booked a $1.2bn non-tax-deductible charge
related to a U.S. Treasury announcement of anti-money-laundering and sanctions
violations, cutting EPS by $0.17. The U.S. Treasury said BofA effectively
outsourced key compliance work to external firms to protect revenue; the bank
says remediation costs are included in operating expenses. Ongoing market
volatility supported activity in equities desks across Wall Street, while higher
rates weighed on fixed-income trading and broader lending activity.
