New Delhi, Oct. 15 -- After a 5% earnings-led crash in the previous session, shares of Bank of America (BofA) were trading flat in pre-market trading on Thursday. Profits at the second-largest US bank fell more than 15% in the third quarter after it took a $1.2 billion hit from a regulatory fine related to money laundering and sanctions violations.

The company announced a $1.2 billion non-tax-deductible charge related to the fines. The US Treasury Department said on Tuesday that the bank had effectively outsourced a key part of its compliance efforts as it sought to protect revenue.

BofA said the costs of remediating the issues were already factored into its expenses.

The charge reduced earnings by 17 cents per share and contributed to...