Bank of America today commented on the results of the Federal Reserve’s 2020 Comprehensive Capital Analysis and Review (CCAR). The company continues to be well capitalized and able to serve clients, communities and businesses, even during times of severe economic and financial 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," said Bank of America Chairman and Chief Executive Officer Brian Moynihan.
Preliminary stress capital buffer set at 2.5%
Based on its 2020 CCAR results, Bank of America will be subject to a preliminary 2.5% stress capital buffer (SCB) for the period beginning October 1, 2020 and ending on September 30, 2021. In addition to the Basel 3 common equity tier 1 (CET1) minimum of 4.5%, and the Global Systemically Important Bank Surcharge of 2.5%, this requires the company’s CET1 ratio under applicable regulatory standards to remain above 9.5% during this period. The Federal Reserve has stated it expects to finalize the SCB for all firms by August 31, 2020.
As of March 31, 2020, Bank of America’s CET1 ratio was 10.8%, which would equate to approximately $20 billion in CET1 capital above the new required minimum if it had been in place on March 31.
Outlook for 2020 capital distributions
Bank of America is committed to returning capital to shareholders over time, in excess of what is needed across economic cycles to grow the company and support clients, communities and the global economy. The company intends to maintain the quarterly common stock dividend at the current rate of $0.18 until further notice, subject to approval by Bank of America’s Board of Directors. Additional capital distributions, including common stock repurchases, will also be subject to approval by the company’s Board, and consistent with applicable regulatory requirements.
Certain statements in this press release represent the current expectations, plans or forecasts of Bank of America based on available information and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. These statements often use words like "expects," "anticipates," "believes," "estimates," "targets," "intends," "plans," "predict," "goal" and other similar expressions or future or conditional verbs such as "will," "may," "might," "should," "would" and "could." Forward-looking statements speak only as of the date they are made, and Bank of America undertakes no obligation to update any forward-looking statement to reflect the impact of circumstances or events that arise after the date the forward-looking statement was made.
These statements are not guarantees of future results or performance and involve certain risks, uncertainties and assumptions that are difficult to predict and are often beyond Bank of America’s control. Actual outcomes and results may differ materially from those expressed in, or implied by, any forward-looking statements. You should not place undue reliance on any forward-looking statement and should consider all of the uncertainties and risks discussed under Item 1A. "Risk Factors" of Bank of America’s Annual Report on Form 10-K for the year ended December 31, 2019, under Part II, Item 1A. "Risk Factors" of Bank of America’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 and in any of Bank of America’s other subsequent Securities and Exchange Commission filings.
Bank of America
Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 66 million consumer and small business clients with approximately 4,300 retail financial centers, including approximately 3,000 lending centers, 2,700 financial centers with a Consumer Investment Financial Solutions Advisor and approximately 2,100 business centers; approximately 16,900 ATMs; and award-winning digital banking with approximately 39 million active users, including approximately 30 million mobile users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and approximately 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
Investors May Contact:
Lee McEntire, Bank of America, 1.980.388.6780
Jonathan Blum, Bank of America (Fixed Income), 1.212.449.3112
Reporters May Contact:
Jerry Dubrowski, Bank of America, 1.646.855.1195 (office) or 1.508.843.5626 (mobile)