CHARLOTTE, N.C.–(BUSINESS WIRE)–Bank of America right now commented on the outcomes of the Federal Reserve’s 2020 Complete Capital Evaluation and Evaluate (CCAR). The corporate continues to be properly capitalized and capable of serve shoppers, communities and companies, even throughout occasions of extreme financial and monetary 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,” stated Bank of America Chairman and Chief Govt Officer Brian Moynihan.
Preliminary stress capital buffer set at 2.5%
Primarily based on its 2020 CCAR outcomes, Bank of America will probably be topic to a preliminary 2.5% stress capital buffer (SCB) for the interval starting October 1, 2020 and ending on September 30, 2021. Along with the Basel Three widespread fairness tier 1 (CET1) minimal of 4.5%, and the International Systemically Necessary Bank Surcharge of two.5%, this requires the corporate’s CET1 ratio beneath relevant regulatory requirements to stay above 9.5% throughout this era. The Federal Reserve has acknowledged it expects to finalize the SCB for all corporations by August 31, 2020.
As of March 31, 2020, Bank of America’s CET1 ratio was 10.8%, which might equate to roughly $20 billion in CET1 capital above the brand new required minimal if it had been in place on March 31.
Outlook for 2020 capital distributions
Bank of America is dedicated to returning capital to shareholders over time, in extra of what’s wanted throughout financial cycles to develop the corporate and help shoppers, communities and the worldwide financial system. The corporate intends to take care of the quarterly widespread stock dividend on the present charge of $0.18 till additional discover, topic to approval by Bank of America’s Board of Administrators. Further capital distributions, together with widespread stock repurchases, may also be topic to approval by the corporate’s Board, and in line with relevant regulatory necessities.
Sure statements on this press launch signify the present expectations, plans or forecasts of Bank of America based mostly on out there info and are forward-looking statements throughout the which means of the Personal Securities Litigation Reform Act of 1995. Ahead-looking statements may be recognized by the truth that they don’t relate strictly to historic or present information. These statements typically use phrases like “expects,” “anticipates,” “believes,” “estimates,” “targets,” “intends,” “plans,” “predict,” “goal” and different related expressions or future or conditional verbs corresponding to “will,” “may,” “might,” “should,” “would” and “could.” Ahead-looking statements communicate solely as of the date they’re made, and Bank of America undertakes no obligation to replace any forward-looking assertion to mirror the affect of circumstances or occasions that come up after the date the forward-looking assertion was made.
These statements will not be ensures of future outcomes or efficiency and contain sure dangers, uncertainties and assumptions which are troublesome to foretell and are sometimes past Bank of America’s management. Precise outcomes and outcomes may differ materially from these expressed in, or implied by, any forward-looking statements. You shouldn’t place undue reliance on any forward-looking assertion and may think about all the uncertainties and dangers mentioned beneath Merchandise 1A. “Risk Factors” of Bank of America’s Annual Report on Type 10-Okay for the yr ended December 31, 2019, beneath Half II, Merchandise 1A. “Risk Factors” of Bank of America’s Quarterly Report on Type 10-Q for the quarter ended March 31, 2020 and in any of Bank of America’s different subsequent Securities and Trade Fee filings.
Bank of America
Bank of America is likely one of the world’s main monetary establishments, serving particular person customers, small and middle-market companies and huge companies with a full vary of banking, investing, asset administration and different monetary and threat administration services. The corporate gives unmatched comfort in the USA, serving roughly 66 million client and small enterprise shoppers with roughly 4,300 retail monetary facilities, together with roughly 3,000 lending facilities, 2,700 monetary facilities with a Client Funding Monetary Options Advisor and roughly 2,100 enterprise facilities; roughly 16,900 ATMs; and award-winning digital banking with roughly 39 million energetic customers, together with roughly 30 million cellular customers. Bank of America is a worldwide chief in wealth administration, company and funding banking and buying and selling throughout a broad vary of asset courses, serving companies, governments, establishments and people around the globe. Bank of America provides industry-leading help to roughly Three million small enterprise house owners via a collection of modern, easy-to-use on-line services. The corporate serves shoppers via operations throughout the USA, its territories and roughly 35 nations. Bank of America Company stock (NYSE: BAC) is listed on the New York Stock Trade.
For extra Bank of America information, together with dividend bulletins and different essential info, go to the Bank of America newsroom and register for information electronic mail alerts.