Baku:Bank of America reported a 17% decline in third-quarter net profit as a $1.2 billion penalty imposed by the US Treasury Department impacted its earnings.

According to Anadolu Agency, the penalty reduced earnings by $0.17 per share. Without this impact, earnings would have amounted to $1.08 per share, which is still below market expectations. The bank, the second-largest by assets in the US, recorded a net income of $6.93 billion, or $0.91 per share. Revenue on a fully taxable-equivalent basis was $30.12 billion, falling short of market expectations.

The penalty, announced by the Treasury Department, put a spotlight on the bank's risk management and internal controls. Brian Moynihan, who has been leading Bank of America since 2010, previously focused on resolving mortgage-related issues following the 2008 global financial crisis.

This earnings announcement followed similar reports from JPMorgan Chase, Goldman Sachs, Citigroup, and Wells Fargo, with JPMorgan also failing to meet analysts' expectations for earnings per share and revenue.