Bank of America Slashes Q3 Earnings, Shares Fall
International Business Times
Published Nov 06, 2014 07:32PM ET
Updated Nov 06, 2014 08:00PM ET
Bank of America Slashes Q3 Earnings, Shares Fall
By Jessica Menton - Bank of America Corporation (NYSE:BAC) shares fell nearly 1 percent in extended-hours trading Thursday after the company lowered its third-quarter profit by $400 million as part of a revision, citing legal expenses related to its foreign exchange business. The news comes just one week after Citigroup Inc. adjusted its third-quarter earnings to $2.8 billion, or $600 million less than it had previously reported, also citing litigation costs.
Representatives from Bank of America did not immediately respond to requests for comment.
Bank of America said it is engaged in “separate advanced discussions with certain U.S. banking regulatory agencies” to resolve matters related to its foreign exchange business. As a result, the company recorded a $400 million charge and adjusted its third-quarter results to a net loss of $232 million or 4 cents per share. Previously, Bank of America on Oct. 15 reported a third-quarter loss of $168 million, or 1 cent per share, on revenue of $21.4 billion.
The company did not update its forward-looking guidance for the fourth quarter. “There can be no assurance as to the ultimate outcome of these matters,” Bank of America said in a statement.
Following the announcement, shares of Bank of America fell 0.92 percent on Thursday to $17.20 in after-hours trading.
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Written By: International Business Times
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