Bank earnings grow as compliance charges and bond losses weigh

Bank of America absorbs its settlement charge, but remediation obligations remain. Third-quarter net income was $6.9 billion, or $0.91 per diluted share, including a $1.2 billion regulatory settlement charge; excluding it, adjusted EPS was $1.08. Revenue rose 3% to $30 billion and net interest income increased 8%. CEO Brian Moynihan said the $1.21 billion anti-money-laundering penalty was paid in the third quarter and remediation expenses were in the expense run rate; the CFO said there was no asset cap. Required third-party lookback and independent governance reviews remain part of the regulatory resolution.

Bank of America’s unrealized bond losses exceed $109 billion. Third-quarter paper losses increased 28% from June, Bloomberg reported, as rising Treasury yields reduced the portfolio’s market value. The losses are unrealized, rather than a reported settlement expense, and show the bank’s continuing exposure to higher interest rates.

PNC reports $2.1 billion in profit as lending and deposits grow. Third-quarter diluted EPS was $4.97, or $5.09 adjusted. Average loans, deposits and net interest income increased while expenses declined, improving the efficiency ratio to 57%. PNC returned $1.4 billion to shareholders through dividends and repurchases, pairing operating growth with capital distributions.

Citigroup raises its return outlook, though analysts cut price targets. The bank now expects 2026 return on tangible common equity above 11%, versus its previous 10%–11% range, after posting 11.5% in the third quarter. Revenue increased 8% year over year and net income rose 40%. Management cautioned that seasonal markets activity could reduce fourth-quarter revenue. RBC Capital, TD Cowen and Evercore ISI lowered price targets after results while retaining their ratings.

Wells Fargo retains interest-income guidance despite a trading-driven revenue miss. The bank reaffirmed approximately $50 billion of 2026 net interest income after beating earnings estimates but missing revenue expectations, primarily because of weaker trading activity. Average loans and deposits each rose 11% year over year, to $1.03 trillion and $1.48 trillion. Consumer nonaccrual loans fell more than 8% to $2.9 billion, and management expects fourth-quarter spread income of $13 billion.

Goldman Sachs posts $17.01 EPS as equities trading outperforms. Third-quarter net revenue was $18.68 billion, net earnings were $5.29 billion and annualized return on equity was 18.7%. Equities trading revenue of $6.44 billion exceeded expectations, but fixed-income and commodities revenue of $3.47 billion missed estimates and was slightly lower year over year. Higher credit-loss provisions and challenges in Platform Solutions tempered results driven by Global Banking & Markets and Asset & Wealth Management.

Morgan Stanley beats estimates, led by equities trading. Third-quarter EPS was $3.03 against a $2.91 estimate, and revenue was $20.34 billion against $19.95 billion expected. The earnings-call report put return on tangible equity at a record 22.6%, with record Wealth Management revenue of about $9 billion and 18% year-over-year growth in Institutional Securities. The results combined trading-led outperformance with stronger wealth-management revenue.

Wells Fargo deploys its proprietary blockchain for tokenized deposits. Its previously announced fall program was announced to offer select corporate and commercial clients tokenized deposits in U.S. dollars and British pounds for cross-border payments, with expansion to more clients, countries and currencies planned over the next year. American Banker cautioned that limited interoperability between banks’ networks could constrain the tokens’ practical utility.