CHARLOTTE, N.C., June 27, 2022 /PRNewswire/ — Bank of America today commented on the results of the Federal Reserve’s 2022 Comprehensive Capital Analysis and Review (CCAR) and announced plans to increase its quarterly common stock dividend to $0.22 per share beginning in the third quarter of 2022.
Based on the 2022 CCAR results, Bank of America’s stress capital buffer (SCB) will be approximately 100 bps higher than the current 2.5% level and will therefore add approximately 100 bps to our CET1 minimum requirement of 9.5%. When finalized, this new SCB will be effective from October 1, 2022 to September 30, 2023. At March 31, 2022 Bank of America had $170 billion of regulatory CET1 capital and a CET1 ratio of 10.4%.
“Our responsible growth strategy over the last decade has put us in a strong position to support our clients and deliver for shareholders,” said Bank of America Chair and Chief Executive Officer Brian Moynihan. “In October 2021, we renewed the Company’s previously announced $25 billion common stock purchase program with $17 billion remaining as of March 31, 2022, and today we are also announcing that we expect to increase the quarterly common stock dividend by 5% to $0.22 per share.” Bank of America Chief Financial Officer Alastair Borthwick added that “the 2022 annual stress test results once again support that Bank of America maintains a strong capital position to serve its customers and clients through the current economic environment and our continued discipline around risk has us well prepared for a severe economic stress scenario.”
The common stock dividend is subject to approval from the Company’s Board of Directors.
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, dividends, efficiency ratio, capital measures, and future business and economic conditions more…
Read More: Bank of America Comments on Stress Test Results; Plans to Increase Quarterly
