Bank of America reported a 17% drop in third-quarter profit to $6.93 billion, or 91 cents per share, falling short of analyst expectations that projected earnings of $1.10 per share. The bank’s revenue came in at $30.12 billion, missing estimates by roughly $570 million, mainly due to underperformance in its trading operations on Wall Street. These results led to a nearly 5% decline in Bank of America shares on the day of the announcement.

The decline in revenue was primarily attributed to weaker-than-expected fixed income and equities trading. Fixed income trading revenue fell 17% to $2.55 billion, about $450 million below estimates, reflecting reduced activity in mortgages, municipals, and credit markets. Though equities trading revenue rose 10% to $2.51 billion, it still lagged analyst forecasts by nearly $300 million. Overall, combined bond and stock trading revenues dropped 5%, contrary to CEO Brian Moynihan’s prior guidance that trading revenue would remain roughly flat.

Bank of America was also hit with a $1.2 billion fine from U.S. regulators related to lapses in reporting suspicious transactions, further weighing on third-quarter results. CEO Moynihan expressed confidence in the bank’s remediation efforts but did not provide a timeline for resolving the regulatory issues. The penalty trimmed earnings per share by 17 cents, meaning adjusted EPS excluding the fine would have been $1.08, closer to analyst expectations.

Analysts criticized Bank of America’s capital markets performance, with Wells Fargo labeling it “easily worst in class” for the quarter. Investors also questioned the impact on the bank’s reputation and the future of share buybacks following the compliance failure. Management blamed the decline in bond trading on the sharp 85 basis point rise in interest rates during the quarter, which negatively affected credit and mortgage trading businesses. Despite the challenges, net interest income grew 7.9% to $16.6 billion, modestly beating estimates.