Bank of America Stock Price, News & Analysis

Bank of America reported a 11% year-over-year increase in aggregated credit and debit card spending for June, following 13% and 9% growth in previous months. Credit card spending alone rose by 16% while debit card spending increased by 6%. Despite a 3.3% growth per household over the prior 28 days, spending growth shows signs of slowing. In June, gas spending accounted for 9.8% of total card spending among lower-income households. The overall economic backdrop remains challenging, yet household balance sheets are said to be in a strong position.

Bank of America, based in Charlotte, N.C., announced plans to raise its quarterly dividend by 5% to $0.22 per share, effective Q3 2022. This decision follows the Federal Reserve's 2022 Comprehensive Capital Analysis and Review (CCAR), which revealed that the bank's stress capital buffer will increase by 100 basis points, affecting its CET1 capital requirement starting October 1, 2022. As of March 31, 2022, Bank of America had $170 billion in regulatory CET1 capital and a CET1 ratio of 10.4%.

Bank of America released a report highlighting women's financial wellness. While 94% believe they will manage their finances, only 48% feel confident, and just 28% feel empowered to act. Many are adept at everyday tasks like budgeting (53%), yet struggle with long-term goals such as saving for emergencies (44%) and retirement (36%). The report also notes that younger women are more open about financial discussions. A significant finding is that 44% regret not investing sooner. Bank of America emphasizes the importance of empowering women with financial tools and knowledge.

Bank of America has launched an exclusive travel program for ultra-high-net-worth clients in partnership with Indagare. This initiative, part of the Preferred Rewards program, offers members unique travel experiences and virtual tours. Clients with at least $10 million in assets can access bespoke trips like private tours in Napa Valley and Paris. Despite inflation challenges, consumer spending, particularly on travel, is booming, demonstrating a robust recovery in leisure activities.

Little Leaf Farms has successfully raised $300 million in new capital, primarily through equity financing from The Rise Fund and debt funding from Bank of America. This funding aims to support an aggressive expansion strategy that includes increasing their greenhouse acreage to 100 acres by 2026, with a new facility opening in McAdoo, Pennsylvania this July, which will immediately double their current acreage. The investments will enhance distribution, aiming to make locally grown lettuce available to over half the U.S. population.

Bank of America expands its market-leading Virtual Account Management (VAM) solution to the United States, following its previous rollout in the UK, Ireland, and the Netherlands. This innovative system allows companies to open virtual accounts that enhance working capital management, enabling real-time transaction visibility and treasury efficiency. The VAM solution integrates with the CashPro® platform and supports various payment methods. Future global expansions to Europe, LATAM, and Asia are planned for 2022 and 2023, aiming to streamline treasury operations for Fortune 1000 clients.

Bank of America has pledged $40 million in low-cost capital to enhance health care access in underserved communities across the U.S. This funding aims to develop community health care centers, partnering with non-profit community development financial institutions (CDFIs). Additionally, $100,000 will be allocated for operational support of CDFIs. This initiative aligns with the bank's focus on advancing racial equality and economic opportunity, following a $25 million collaboration to improve health outcomes in minority communities.

Bank of America Corporation's Board of Directors has authorized cash dividends on various series of preferred stock. The dividends include:

• 7.25% Non-Cumulative Preferred Stock, Series L: $18.125 per share, payable August 1, with a record date of July 1.
• 5.875% Non-Cumulative Preferred Stock, Series HH: $0.3671875 per share, payable July 25, with a record date of July 1.
• Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series MM: $21.50 per share, payable July 28, with a record date of July 1.

This dividend declaration reflects the company's commitment to return value to shareholders.