Bank of America Corporation BAC shares are trading higher today after the company authorized share buybacks.
The Board authorized a $25 billion stock repurchase program starting August 1, 2024, replacing the existing program set to expire on that date.
As of June 30, 2024, the current program had $6.7 billion in repurchases left.
As announced earlier, the bank had raised the quarterly cash dividend to $0.26 per share, up $0.02 from the previous quarter. The dividend will be paid on September 27 to shareholders of record as of September 6.
Related: US Banks Bump Up Dividends Following Fed’s Successful Stress Test
The company’s Board also declared a regular quarterly cash dividend of $1.75 per share on the 7% Cumulative Redeemable Preferred Stock, Series B. The dividend is payable on October 25 to shareholders of record as of October 11.
Based on the 2024 CCAR results, Bank of America’s stress capital buffer (SCB) will be 3.2% and the CET1 minimum requirement will be 10.7% when finalized.
This new SCB will be effective from October 1, 2024 to September 30, 2025. At March 31, 2024 Bank of America had $197 billion of regulatory CET1 capital and a CET1 ratio of 11.9% which exceeds our current regulatory minimum requirement of 10.0%.
Last week, the bank reported second-quarter EPS of $0.83, beating the analyst consensus estimate of $0.80, and revenue (net of interest expense) of $25.54 billion, beating the analyst consensus estimate of $25.22 billion.
In the quarter, the bank returned $5.4 billion to shareholders: $1.9 billion in dividends and $3.5 billion in share repurchases.
BAC stock has gained over 30% in the last 12 months. Investors can gain exposure to the stock via First Trust Nasdaq Bank ETF FTXO and Invesco KBW Bank ETF KBWB.
Read: These Analysts Boost Their Forecasts On Bank of America Following Better-Than-Expected Earnings
Price Action: BAC shares are up 0.50% at $42.40 premarket at the last check Thursday.
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