# Bank of America Stock Q3 2026: NII Up 8% as a $1.2bn Penalty Hits Profit
> Bank of America stock Q3 2026: NII up 8% to $16.4bn, EPS of $0.91 ($1.08 before a $1.2bn penalty), CET1 at 10.9% and $8.3bn returned. BAC risks.

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## Facts
- Ticker: BAC
- QSILabs fair value: $51.88 USD
- Price: $50.01 (as of 2026-10-30)
- As of: Q3 2026 results (quarter ended 2026-09-30, reported 2026-10-14) and Q3 2026 10-Q (filed 2026-10-30); price as of 2026-10-30 close
- Fiscal period: Q3 2026 (calendar)
- Published: 2026-11-02
- Updated: 2026-11-02
- Author: QSI Labs Research
- Canonical: https://www.quantitativesuperintelligencelabs.com/research/bank-of-america-stock-q3-2026-earnings-nii-capital/

## Short answer
Bank of America stock Q3 2026 comes down to a solid quarter hidden behind a one-off penalty. In the three months to 30 September 2026, Bank of America's revenue rose 3% to $30.0bn and net interest income rose 8% to $16.4bn, while net charge-offs fell to 0.44% of loans. Net income fell to $6.9bn, or $0.91 a share, from $8.3bn, because the bank booked a $1.2bn non-tax-deductible charge for civil money penalties tied to anti-money laundering and sanctions compliance. Excluding it, earnings per share were $1.08, up from $1.04. The bank returned $8.3bn to shareholders but its CET1 ratio slipped to 10.9%, 0.9 points above its regulatory minimum. Our excess-return model values Bank of America at $51.88 a share, against a $50.01 close on 30 October 2026, so we see the shares as about fairly priced.

## Key takeaways
- Revenue up, profit down. Q3 2026 revenue net of interest expense was $29,958m, up 3.2% from $29,040m. Net income fell 17% to $6,933m and diluted EPS fell to $0.91 from $1.04 (8-K Ex 99.1).
- A $1.2bn penalty. The quarter includes a $1.2bn non-tax-deductible regulatory settlement charge, or $0.17 a share, after the OCC, FinCEN and OFAC announced resolutions on 13 October 2026. Adjusted EPS was $1.08 (8-K Ex 99.1; Form 10-Q).
- Net interest income up 8%. NII was $16,449m, up from $15,233m, and the net interest yield rose 15 basis points to 2.16%. Interest expense fell faster than interest income (8-K Ex 99.3).
- Clean credit. Net charge-offs were $1,349m, 0.44% of average loans, against $1,367m and 0.47% a year earlier. The provision for credit losses was $1,269m (8-K Ex 99.3).
- Capital is getting tighter. Bank of America bought back $6.0bn of stock in the quarter at an average of $62.15 a share. Its Standardized CET1 ratio fell to 10.9% from 11.6% a year earlier; the minimum is 10.0% (Form 10-Q).
- Our value: $51.88 a share, 3.7% above the $50.01 close on 30 October 2026. The average of 25 analyst targets is $62.61 (StockAnalysis, S&P Global data).
- What to watch. Q4 2026 results in January 2027, where consensus implies adjusted EPS of about $1.11, and whether buybacks slow as the CET1 ratio approaches its minimum.

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