Bank of America Corp.’s stock and fixed-income traders missed estimates as the bank’s results were also hurt by a charge tied to regulatory penalties over money laundering and sanctions violations.

The firm’s traders missed estimates, with bond-trading revenue falling 17% to $2.55 billion and equity trading down 10% to $2.51 billion, according to a statement Wednesday.

BofA, the No. 2 US bank, also announced a $1.2 billion non-tax-deductible charge, cutting into net income by 17 cents a share. The charge is for fines for money laundering and sanctions violations, with the Treasury Department saying Tuesday that the bank “effectively outsourced” a key part of its compliance efforts as it sought to protect revenue. BofA said its costs to remediate the issues are already factored into its expenses.

As the bank kicked off a call with analysts Wednesday, Chief Executive Officer Brian Moynihan immediately addressed the regulatory order.

“We understand the seriousness of compliance and we are responsible for getting it right,” Moynihan said on the quarterly earnings call. “We’ve invested billions of dollars in technology and dedicated thousands of employees to combat financial crime. The team is far along with and committed to completing the work required to be addressed by the regulators.”

Still, the issues lingered over the stock Wednesday. Shares of Charlotte, North Carolina-based Bank of America slumped 5.5% at 8:44 a.m. in early New York trading. They were down 1.9% since the start of the year through Tuesday.

BofA’s results also offer a window into US consumer health, with interest rates rising and the war in Iran keeping gas prices high. The company set aside $1.27 billion for potentially soured loans, less than the $1.5 billion expected by analysts. Net charge-offs dropped to $1.35 billion and were lower than the $1.44 billion analysts expected.

Ongoing volatility has generally benefited BofA’s Wall Street competitors, especially their equity desks, which have seen busy trading days as geopolitical risks and fears about artificial intelligence whipsaw stocks, while higher interest rates are weighing on fixed-income trading and borrowing more broadly.

On Tuesday, Goldman Sachs Group Inc. and JPMorgan Chase & Co. reported strong results from equity trading in the third quarter countered by softer revenue in their fixed-income divisions. Citigroup Inc.’s bond traders, meanwhile, surprised with their best third quarter in at least a decade, and Wells Fargo & Co. reported loan-loss provisions and net charge-offs that were better than analysts expected.

At BofA, investment-banking revenue slumped 11% while faring better than analysts expected. Fees for advising on mergers and acquisitions declined 19%. Revenue from equity issuance increased 9.1%, while debt-issuance revenue fell almost 14%.

In the third quarter, Bank of America’s total revenue came in at almost $30 billion, missing the analyst consensus. The company’s loan balances rose to $1.23 trillion at the end of the third quarter, up 6.3% from a year earlier and matching analysts’ estimates. Lending has been a key focus for investors, with interest rates on the rise in the US.

Noninterest expenses surged almost 14% to $19.7 billion, including the charge tied to the regulatory fines.

— By Paige Smith and Katherine Doherty (Bloomberg News)