What is the primary reason for the disclosed impairment charge?

The impairment charge of approximately $2.1 billion is due to the termination of Bank of America's merchant services joint venture, as previously communicated.

When will this impairment charge impact Bank of America's financial statements?

The non-cash, pretax impairment charge will be recognized in the quarter ending September 30, 2019.

Will this impairment charge affect Bank of America's regulatory capital ratios?

Yes, the impairment charge is estimated to reduce Bank of America's Common Equity Tier 1 (CET1) ratio by approximately 10 basis points.

Does this impairment charge impact Bank of America's capital distribution plans?

No, the company explicitly states that this impairment charge will have no effect on its capital plan for the period beginning July 1, 2019, through June 30, 2020.

BANK OF AMERICA CORP /DE/ 8-K SEC Disclosure

Summary

Bank of America Corporation (BAC) has filed an 8-K report detailing a significant non-cash, pretax impairment charge of approximately $2.1 billion. This charge is a result of the termination of its merchant services joint venture, as previously announced. The impairment is expected to be recognized in the quarter ending September 30, 2019, and will be classified under other general operating expenses.

Key Highlights

1A non-cash, pretax impairment charge of approximately $2.1 billion has been recognized.
2The impairment is related to the termination of Bank of America's merchant services joint venture.
3The charge will be recorded in the quarter ending September 30, 2019.
4The impairment will be presented within other general operating expense.
5The Common Equity Tier 1 (CET1) ratio is estimated to be reduced by 10 basis points.
6The impairment charge will not impact the Corporation's capital plan for the period of July 1, 2019, through June 30, 2020.

BANK OF AMERICA CORP /DE/ 8-K Report, Corporate Update (Sep 4, 2019)

Summary

Key Highlights

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