Bank of America reported a lower third-quarter profit, hit by a $1.2 billion regulatory settlement charge for inadequate financial crime monitoring systems. The fine reduced earnings by 17 cents a share, resulting in a profit of $6.9 billion, or 91 cents a share, down from $8.3 billion a year earlier. Adjusted earnings were $1.08 a share, slightly below the $1.10 expected. Revenue rose to $30 billion, missing the $30.58 billion estimate.
In contrast, Morgan Stanley saw its profit and revenue climb. The firm reported third-quarter net revenue of $20.3 billion, up from $18.2 billion a year earlier, beating the $19.93 billion estimate. Net income increased to $4.97 billion, or $3.03 a share, from $4.61 billion, or $2.80, in the prior year. Analysts had expected $2.93 a share. Strength in equity revenue and wealth management fees drove the growth.
Source: Wall Street Journal Markets · Summarized by HeadlinesBriefing