Bank of America to Buy Back $25 Billion of Common Stock Over Time

By Colin Kellaher

Bank of America Corp. on Thursday said its board approved the repurchase of $25 billion in stock over time, as the bank prepares to ramp up buybacks when government restrictions end.

The Charlotte, N.C., bank said its second-quarter buyback activity will be in line with the Federal Reserve's current limits, under which repurchases and common stock dividends must be correlated to the average quarterly net income for the previous four quarters.

Bank of America said it expects to return more capital to shareholders when the Fed lifts those restrictions, adding that it had roughly $35 billion in excess capital above the 9.5% common equity Tier 1 requirement.

Bank of America, which has roughly 8.63 billion shares outstanding, sports a market capitalization of about $339.5 billion based on Wednesday's closing price of $39.88.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

April 15, 2021 06:42 ET (10:42 GMT)

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