Bank of America profit falls 17% after $1.2B Treasury penalty

The second-largest US bank by assets posted net income of $6.93 billion, or $0.91 per share.

The penalty reduced earnings by $0.17 per share. Excluding that impact, earnings would have totaled $1.08 per share, below market expectations.

Revenue on a fully taxable-equivalent basis came in at $30.12 billion, also below market expectations.

The results followed the Treasury Department’s announcement of the penalty Tuesday, putting the bank’s risk management and internal controls under scrutiny.

Brian Moynihan, who has led Bank of America since 2010, spent the early years of his tenure addressing mortgage-related issues following the 2008 global financial crisis.

The earnings release came a day after JPMorgan Chase, Goldman Sachs, Citigroup, and Wells Fargo reported mixed quarterly results. JPMorgan’s earnings per share and revenue also fell short of analysts’ expectations.