Bank of America Announces $25 Billion Common Stock Repurchase Plan
Bank of America has announced a $25 billion stock repurchase program, reflecting its commitment to returning excess capital to shareholders. This plan is aimed at offsetting shares given through equity compensation and emphasizes the bank's strong capital position, with a CET1 ratio of 11.8% as of March 31, 2021, exceeding the 9.5% regulatory requirement. The buyback will be subject to regulatory restrictions and may be influenced by market conditions and the bank's financial performance.
- Authorization of a $25 billion stock repurchase program enhances shareholder value.
- CET1 ratio of 11.8% indicates a strong capital position, with $35 billion in excess capital.
- Repurchase timing and amounts are subject to various factors, creating uncertainty.
Bank of America Corporation today announced that its Board of Directors has authorized the repurchase of up to
For the second quarter 2021, the company’s repurchase plans will be consistent with Federal Reserve System’s (FRB) restrictions that common stock repurchases and common stock dividends be correlated to the average quarterly net income for the previous four quarters.
Following the expiration of the restrictions, Bank of America expects to distribute additional capital to shareholders. Bank of America’s ability to make capital distributions depends, in part, on its ability to maintain regulatory capital levels above the
The timing and amount of common stock repurchases made pursuant to the Bank of America common stock repurchase program are subject to various factors, including the company's capital position, liquidity, financial performance and alternative uses of capital, stock trading price, regulatory requirements and general market conditions. Also, it may be suspended at any time. The common stock repurchases may be effected through open market purchases or privately negotiated transactions, including repurchase plans that satisfy the conditions of Rule 10b5-1 of the Securities Exchange Act of 1934, as amended.
Forward-Looking Statements
Certain statements contained in this news release may constitute “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent the current expectations, plans or forecasts of Bank of America based on available information. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. These statements often use words like “expects,” “anticipates,” “believes,” “estimates,” “targets,” “intends,” “plans,” “predict,” “goal” and other similar expressions or future or conditional verbs such as “will,” “may,” “might,” “should,” “would” and “could.” Forward-looking statements speak only as of the date they are made, and Bank of America undertakes no obligation to update any forward-looking statement to reflect the impact of circumstances or events that arise after the date the forward-looking statement was made.
Forward-looking statements represent Bank of America’s current expectations, plans or forecasts of its future results, revenues, expenses, efficiency ratio, capital measures, and future business and economic conditions more generally, and other future matters. These statements are not guarantees of its future results or performance and involve certain known and unknown risks, uncertainties and assumptions that are difficult to predict and are often beyond Bank of America’s control. Actual outcomes and results may differ materially from those expressed in, or implied by, any forward-looking statements. You should not place undue reliance on any forward-looking statement and should consider all of the uncertainties and risks discussed under Item 1A. “Risk Factors” of Bank of America’s Annual Report on Form 10-K for the year ended December 31, 2020 and in any of Bank of America’s other subsequent Securities and Exchange Commission filings.
Bank of America
Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 66 million consumer and small business clients with approximately 4,300 retail financial centers, including approximately 2,700 lending centers, 2,600 financial centers with a Consumer Investment Financial Solutions Advisor and approximately 2,400 business centers; approximately 17,000 ATMs; and award-winning digital banking with approximately 40 million active users, including approximately 31 million mobile users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and approximately 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and register for email news alerts.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210415005473/en/
FAQ
What is the purpose of Bank of America's $25 billion stock repurchase program?
When will Bank of America begin the stock buyback program?
How does Bank of America’s CET1 ratio impact its stock repurchase plans?
What factors will influence the timing and amount of Bank of America's stock repurchases?
