Bank of America (BAC) added to the mountain of bad news slamming Wall Street on Monday by releasing worse-than-expected quarterly results and warning of “recessionary conditions.”

The financial giant also unveiled plans to raise about $10 billion through a common stock offering and said it will slash its dividend in half.

Shares of Bank of America plunged 7.5% to $29.82 in after-hours trading Monday. Bank of America wasn’t scheduled to release results until Oct. 20.

In the third quarter, BofA earned $1.18 billion, or 15 cents per share, compared to $3.7 billion, or 82 cents a share, a year ago. Analysts polled by Thomson Reuters had expected a larger profit of 60 cents per share.

Revenue, net of interest expense, jumped 21% during the third quarter to $19.9 billion, falling shy of the $20.6 billion analysts had forecasted.

"These are the most difficult times for financial institutions that I have experienced in my 39 years in banking," CEO Ken Lewis said in a statement. "We believe it is prudent to raise capital to very substantial levels in this uncertain environment. Both economic and financial market conditions have changed significantly in the last two months.”

BofA’s results were hurt by higher expenses related to credit costs. The company’s credit-loss provisions rose to $6.45 billion from $2.03 billion a year ago.

The company countered its results by saying it will lower its quarterly dividend to 32 cents a share, in hopes of adding $1.4 billion in capital each quarter.

BofA has emerged as one of the strongest players in the financial world after a month of turmoil on Wall Street, even buying storied Wall Street firm Merrill Lynch last month. But there has been trouble, too -- for example, Countrywide Financial, which Bank of American bought in July, early Monday announced that it would set aside up to $8.6 billion to settle a case brought by state attorneys general regarding risky loans it had originated.