8-KOther EventsExhibits & Filings

BANK OF AMERICA CORP /DE/ 8-K Report, Corporate Update (Jun 28, 2024)

Filed June 28, 2024For Securities:BACBAC-PBBAC-PKBAC-PLBAC-PMBAC-PNBAC-PSBML-PJBAC-PEBAC-PPBAC-PQBACRPBML-PGBML-PHBML-PLBAC-POMER-PK

Summary

Bank of America Corporation (BAC) has announced plans to increase its quarterly common stock dividend to $0.26 per share from $0.24 per share, effective in the third quarter of 2024, subject to Board of Directors approval. This move signals confidence in the company's financial stability and commitment to returning capital to shareholders. Additionally, the company disclosed its results from the Federal Reserve's 2024 Comprehensive Capital Analysis and Review (CCAR). Based on these results, BAC's stress capital buffer (SCB) will be set at 3.2% and its CET1 minimum requirement will be 10.7% upon finalization, effective from October 1, 2024, through September 30, 2025. The company's current CET1 ratio of 11.9% as of March 31, 2024, comfortably exceeds its existing regulatory minimum, indicating robust capital adequacy.

Key Highlights

  • 1Planned increase in quarterly common stock dividend to $0.26 per share, up from $0.24.
  • 2Dividend increase is expected to commence in the third quarter of 2024.
  • 3Dividend increase is subject to approval by Bank of America's Board of Directors.
  • 4Results from the Federal Reserve's 2024 Comprehensive Capital Analysis and Review (CCAR) have been released.
  • 5Bank of America's stress capital buffer (SCB) will be 3.2% when finalized.
  • 6The CET1 minimum requirement will be 10.7% when finalized.
  • 7The new SCB and CET1 minimum requirement will be effective from October 1, 2024, to September 30, 2025.

Frequently Asked Questions

The increased quarterly common stock dividend of $0.26 per share is planned to begin in the third quarter of 2024, subject to Board of Directors approval.

Following the 2024 CCAR results, Bank of America's stress capital buffer (SCB) will be 3.2% and its CET1 minimum requirement will be 10.7% when finalized. These will be effective from October 1, 2024, to September 30, 2025.

As of March 31, 2024, Bank of America held $197 billion in regulatory CET1 capital, resulting in a CET1 ratio of 11.9%. This is above the current regulatory minimum requirement of 10.0% and provides a buffer above the upcoming finalized minimum requirement of 10.7%.

The planned dividend increase suggests management's confidence in the company's financial health and its ability to generate sufficient earnings to support higher payouts to shareholders, while also maintaining strong capital levels.