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 generally, and other future
matters. These statements are not guarantees of 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 due to a variety of factors. You should
not place undue reliance on any forward-looking statement and
should consider all of the precautionary statements, uncertainties
and risks discussed in Bank of America's filings with the
Securities and Exchange Commission, including in Bank of America's
Current Report on Form 8-K dated October 20,
2021, announcing Bank of America's common stock repurchase
program, under Item 1A. "Risk Factors" of Bank of America's Annual
Report on Form 10-K for the year ended December 31, 2021, 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 67 million consumer and small business clients with
approximately 4,100 retail financial centers, approximately
16,000 ATMs, and award-winning digital banking with
approximately 54 million verified digital 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 Bank of America
newsroom and register for news email alerts.
Investors May Contact:
Lee
McEntire, Bank of America
Phone: 1.980.388.6780
lee.mcentire@bofa.com
Jonathan G. Blum, Bank of America
(Fixed Income)
Phone: 1.212.449.3112
jonathan.blum@bofa.com
Reporters May Contact:
Bill
Halldin, Bank of America
Phone: 1.916.718.1251
william.halldin@bofa.com
Christopher P. Feeney, Bank of
America
Phone: 1.980.386.6794
christopher.feeney@bofa.com
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SOURCE Bank of America Corporation