# BAC Release review · Q3 2026

> Bank of America reported. Sales $30.0B vs our $30.4B, miss −1.4%. Adjusted EPS $1.08 vs our $1.09, miss −1¢. After the call we forecast again.

Canonical: https://pricedin.markets/bac/fq3-2026/result/

Wednesday 14 October, 06:44 ET · released

Bank of America reported. Sales $30.0B vs our $30.4B, miss −1.4%. Adjusted EPS $1.08 vs our $1.09, miss −1¢. After the call we forecast again.

[After the call →](https://pricedin.markets/bac/fq3-2026/after-call/)

BAC · Q3 2026 results · release accepted 2026-10-14 06:44:44 ET

## The quarter against our forecast

Q3 2026 sales **$30.0B** our forecast $30.4B · −1.4%

adjusted EPS **$1.08** our forecast $1.09 · −1¢

#### Q3 2026 line by line, as the income statement shows it

| Line | Outlook | Our forecast | Reported | Against our forecast |
| --- | --- | --- | --- | --- |
| Net interest income | — | $16.4B | $16.4B | +0.3% beat |
| Total noninterest income | — | $14.0B | $13.5B | −3.5% miss |
| Total revenue, net of interest expense | — | $30.4B | $30.0B | −1.4% miss |
| Provision for credit losses | — | $1.37B | $1.27B | −7.5% beat |
| Total noninterest expense | — | $18.6B | $19.7B | +6.2% miss |
| Income before income taxes | — | $10.4B | $8.97B | −14.2% miss |
| Income tax expense | — | $2.19B | $2.03B | −7.2% beat |
| Tax rate | — | 21.0% | 22.7% | +1.7 pt miss |
| Net income | — | $8.26B | $6.93B | −16.0% miss |
| Net income applicable to common shareholders | — | $7.85B | $6.54B | −16.6% miss |
| Average diluted common shares issued and outstanding (in shares) | — | 7.18B | 7.22B | +0.04B miss |
| Adjusted EPS | — | $1.09 | $1.08 | −1¢ miss |

Our forecast was frozen before the release: the average of 6 models as of 2026-10-13 09:16:45 ET. Each reported number is quoted from the release; the 10-Q's tagged facts confirm the statement's lines when it is filed. A cost above our forecast is a miss.

#### Why adjusted EPS differs: $1.08 against our $1.09

Net interest income +0.7¢

Total noninterest income −7.0¢

Provision for credit losses +1.4¢

Total noninterest expense +1.0¢

Income tax expense +2.2¢

Net income applicable to common shareholders +0.3¢

Average diluted common shares issued and outstanding (in shares) −0.6¢

Tax on the adjustments, the share count and rounding +0.6¢

Total −1.3¢

Like for like: each line as reported against ours, with each of the company's adjustments on the line it adjusts and ours on ours. The last bar is what remains: the tax on the adjustments, the share count and rounding.

#### Why the quarter differed from our forecast

##### Total noninterest income −7¢

**What we assumed** Forecasts took the CEO's September guide: investment banking fees $1.6B to $1.8B and sales and trading flat with last year. “investment banking $1.6B to $1.8B and sales and trading flat.” opus

**What the company printed** Sales and trading came in lower than that, with FICC down 17% on mortgages, municipals and credit. “FICC revenue decreased 17% to $2.6 billion ($2.5 billion excl. net DVA),4 driven primarily by mortgages, municipals and credit”

**Known before our cutoff?** No: After September 14, no filing or talk before the cutoff updated sales and trading; the only guide found was the CEO's 'flat'.

##### Income tax expense +2¢

**What we assumed** Forecasts carried the second quarter's 21.5% tax rate into the third quarter. “I use 21.5% in both forecast quarters” sol

**What the company printed** Income tax expense printed at $2.0B, below the forecast's $2.2B, so the tax rate was lower than assumed. “Income tax expense 6,345 5,211 2,034 2,491 1,820 1,975 2,076”

**Known before our cutoff?** Yes: On the January 2026 earnings call, management guided a full-year 2026 tax rate of roughly 20%. “For 2026, we expect an effective tax rate of roughly 20%. And then finally, I'd just note on Slide 18, we provided a summary of the forward-looking guidance that we discussed today. So I'll stop there. Thank you. And with that, we'll jump into Q&A.”

##### Provision for credit losses +1¢

**What we assumed** Forecasts held the provision at about $1.4B a quarter, in line with the stable second quarter. “credit. The credit quality is as good as it's been in a long, long time. I mean – so we're normalizing or” grok

**What the company printed** The provision printed at $1.3B, below the second quarter's $1.4B. “Provision for credit losses 3,972 4,367 1,269 1,366 1,337 1,308 1,295”

**Known before our cutoff?** No: No talk between the July call and the cutoff mentioned the provision, so nothing pointed below $1.4B.

##### Total noninterest expense +1¢

**What we assumed** Forecasts set expenses near $18.6B and kept any legal penalty in the downside, not the base. “A newly material settlement or compliance penalty belongs in the downside risk, not in a precisely timed base charge.” sol

**What the company printed** Expenses included a $1.2B regulatory settlement charge, which adjusted earnings per share excludes. “Results Include a Regulatory Settlement Charge of $1.2 Billion, or $0.17 Per Share”

**Known before our cutoff?** Yes: The second-quarter 10-Q warned that resolving the OCC consent order might include monetary penalties. “BANA agreed to a Consent Order announced by the Office of the Comptroller of the Currency (OCC) on December 23, 2024, and the Corporation continues to respond to requests for information from other regulators, relating to certain aspects of its BSA/AML and Economic Sanctions Compliance Programs (Programs). Since late 2023, the Corporation has been working with regulators to make changes to its Programs and has already completed significant steps to satisfy requirements of the Consent Order; however, resolution of the OCC Consent Order and/or other regulatory inquiries may include the payment of monetary penalties and other remedial actions.”

##### Net interest income +1¢

No line written.

##### Average diluted common shares issued and outstanding (in shares) −1¢

No line written.

##### Net income applicable to common shareholders +0¢

No line written.

#### The company's new outlook

The release states no outlook or guidance for any later period; it carries only the forward-looking statements disclaimer.

Our Q4 2026 forecast, made 2026-10-13 before this release sales $30.7B · adjusted EPS $1.16

Each item as the release prints it. Our forecast stands beside an item only when the item is one of our two numbers, for our quarter or year, in our unit.

#### The company's reasons, from the release

- **Total revenue up 3%** “up 3%, reflected higher net interest income (NII) and asset management fees, as well as lower sales and trading revenue and investment banking fees”
- **Net interest income up 8%** “up 8%, driven primarily by higher loan and deposit balances, higher NII related to Global Markets activity and fixed-rate asset repricing”
- **Net income and expense include regulatory settlement charge** “Results Include a Regulatory Settlement Charge of $1.2 Billion, or $0.17 Per Share”
- **Regulatory settlement charge origin** “As a result, for 3Q26, the Corporation recorded non-tax-deductible noninterest expense of $1.2B to accrue for the civil money penalties resulting from the regulatory consent orders (Regulatory Settlement Charge).”
- **All Other net loss** “Net loss of $1.4 billion included a non-tax-deductible regulatory settlement charge of $1.2 billion”
- **Consumer Banking revenue up 4%** “Revenue of $11.6 billion,2 up 4%, driven primarily by higher NII”
- **Consumer Banking noninterest expense up 5%** “Noninterest expense of $5.8 billion increased 5%, driven by investments in technology and brand”
- **GWIM revenue up 13%** “The increase was driven by higher asset management fees, up 16% to $4.5 billion, reflecting higher market valuations, strong AUM flows and higher NII”
- **GWIM noninterest expense up 9%** “Noninterest expense of $5.0 billion increased 9%, driven primarily by revenue-related incentives”
- **Global Banking revenue flat** “Revenue of $6.2 billion3 was relatively flat, as higher NII and treasury service charges were offset by lower investment banking fees”
- **Global Banking noninterest expense up 7%** “Noninterest expense of $3.3 billion increased 7%, driven by investments in the business, including people and technology”
- **Global Markets revenue down 6%** “Revenue of $5.9 billion decreased 6%, driven by lower sales and trading revenue and investment banking fees”
- **Global Markets noninterest expense up 8%** “Noninterest expense of $4.2 billion increased 8%, driven by higher revenue-related expenses and investments in the business, including people and technology”
- **FICC revenue down 17%** “FICC revenue decreased 17% to $2.6 billion ($2.5 billion excl. net DVA),4 driven primarily by mortgages, municipals and credit”
- **Equities revenue up 11%** “Equities revenue increased 11% to $2.5 billion (excl. net DVA, up 10%),4 driven by increased client financing activity, particularly in Asia and the U.S.”