Summary
Bank of America Corporation (BAC) has disclosed its participation in the Federal Reserve's Comprehensive Capital Analysis and Review (CCAR) process. While the company had planned to maintain its common dividend and modestly increase it in the latter half of 2011, the Federal Reserve objected to the proposed increase. BAC intends to work with the Fed to resubmit a revised capital plan seeking permission for this modest dividend increase. The company also highlighted significant progress in strengthening its capital and liquidity positions over the past 12 months. This includes a substantial reduction in risk-weighted assets, growth in Tier 1 common equity and tangible common equity ratios, and a record increase in global excess liquidity, demonstrating a more robust financial foundation.
Key Highlights
- 1Federal Reserve objected to Bank of America's proposed modest increase in common dividend for the second half of 2011.
- 2Bank of America intends to resubmit a revised capital plan to seek approval for the dividend increase.
- 3Risk-weighted assets were reduced by $108 billion in 2010.
- 4Tier 1 common equity ratio increased to 8.6% at year-end 2010 from 7.1% at year-end 2009.
- 5Tangible common equity ratio grew to 6.0% at year-end 2010 from 5.1% at year-end 2009.
- 6Global excess liquidity reached a record $336 billion during 2010.
- 7The company is focused on building its capital and liquidity positions.