Summary
Bank of America Corporation (BAC) announced on December 5, 2017, that its Board of Directors has authorized an additional $5 billion in common stock repurchases, to be completed by June 30, 2018. This new authorization is in addition to the previously existing $12 billion repurchase program for the period of July 1, 2017, to June 30, 2018, which also includes repurchases to offset equity-based compensation awards (estimated at $0.9 billion). These share repurchase programs signal management's confidence in the company's financial health and its ability to return capital to shareholders. Investors should note that the actual timing and amount of repurchases are subject to various factors, including capital levels, market conditions, and alternative investment opportunities, and the program can be suspended at any time. The repurchases can be executed through open market transactions or private agreements.
Key Highlights
- 1Board of Directors authorized an additional $5 billion in common stock repurchases.
- 2New repurchase authorization is targeted for completion by June 30, 2018.
- 3This adds to an existing $12 billion repurchase program through June 30, 2018.
- 4Repurchases are intended to offset equity-based compensation, estimated at $0.9 billion.
- 5Authorizations cover both common stock and warrants.
- 6Repurchases will be executed based on market conditions, capital position, and financial performance.
- 7The company retains the flexibility to suspend repurchases at any time.