Bank of America Statement on Federal Reserve’s 2020 Comprehensive Capital Analysis and Review
June 29 2020 - 4:35PM
Business Wire
Bank of America today commented on the results of the Federal
Reserve’s 2020 Comprehensive Capital Analysis and Review (CCAR).
The company continues to be well capitalized and able to serve
clients, communities and businesses, even during times of severe
economic and financial market stress.
“Our decade-long focus on Responsible Growth has put us in a
strong position to support consumers and businesses with capital
and advice, while continuing to strengthen communities and deliver
returns to shareholders through the economic cycle. This annual
regulatory review, conducted since 2009, provides evidence to
support that,” said Bank of America Chairman and Chief Executive
Officer Brian Moynihan.
Preliminary stress capital buffer set at 2.5% Based on
its 2020 CCAR results, Bank of America will be subject to a
preliminary 2.5% stress capital buffer (SCB) for the period
beginning October 1, 2020 and ending on September 30, 2021. In
addition to the Basel 3 common equity tier 1 (CET1) minimum of
4.5%, and the Global Systemically Important Bank Surcharge of 2.5%,
this requires the company’s CET1 ratio under applicable regulatory
standards to remain above 9.5% during this period. The Federal
Reserve has stated it expects to finalize the SCB for all firms by
August 31, 2020.
As of March 31, 2020, Bank of America’s CET1 ratio was 10.8%,
which would equate to approximately $20 billion in CET1 capital
above the new required minimum if it had been in place on March
31.
Outlook for 2020 capital distributions Bank of America is
committed to returning capital to shareholders over time, in excess
of what is needed across economic cycles to grow the company and
support clients, communities and the global economy. The company
intends to maintain the quarterly common stock dividend at the
current rate of $0.18 until further notice, subject to approval by
Bank of America’s Board of Directors. Additional capital
distributions, including common stock repurchases, will also be
subject to approval by the company’s Board, and consistent with
applicable regulatory requirements.
Forward-looking statements Certain statements in this press
release represent the current expectations, plans or forecasts of
Bank of America based on available information and are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. 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.
These statements are not guarantees of future results or
performance and involve certain 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. You should not place undue reliance on
any forward-looking statement and should consider all of the
uncertainties and risks discussed under Item 1A. “Risk Factors” of
Bank of America’s Annual Report on Form 10-K for the year ended
December 31, 2019, under Part II, Item 1A. “Risk Factors” of Bank
of America’s Quarterly Report on Form 10-Q for the quarter ended
March 31, 2020 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
66 million consumer and small business clients with approximately
4,300 retail financial centers, including approximately 3,000
lending centers, 2,700 financial centers with a Consumer Investment
Financial Solutions Advisor and approximately 2,100 business
centers; approximately 16,900 ATMs; and award-winning digital
banking with approximately 39 million active users, including
approximately 30 million mobile 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 owners 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 the Bank of America newsroom
and register for news email alerts.
www.bankofamerica.com
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version on businesswire.com: https://www.businesswire.com/news/home/20200629005809/en/
Investors May Contact: Lee McEntire, Bank of America,
1.980.388.6780 lee.mcentire@bofa.com
Jonathan Blum, Bank of America (Fixed Income), 1.212.449.3112
jonathan.blum@bofa.com
Reporters May Contact: Jerry Dubrowski, Bank of America,
1.646.855.1195 (office) or 1.508.843.5626 (mobile)
jerome.f.dubrowski@bofa.com
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