BofA Plans to Buy Back $2.9 Billion of Stock This Quarter
(Bloomberg) -- Bank of America Corp. said it plans to repurchase $2.9 billion worth of stock this quarter, the most it can under new Federal Reserve guidelines.
The buybacks come on top of its 18-cent dividend and $300 million in repurchases that offset stock awards, the bank said Tuesday in a statement that came ahead of its fourth-quarter results. Bank of America said it had $36 billion more in capital than was needed to meet its minimum requirements.
The biggest banks are restarting share buybacks after winning Fed approval last month. Executives hope bigger capital returns can win over investors who largely left the industry out of 2020’s stock rally. Critics say firms should hold off on buybacks and build capital to support lending during the pandemic.
Bank of America shares climbed 1% to $33.35 at 6:26 a.m. in early New York trading.
JPMorgan Chase & Co. said last week it could buy back as much as $4.5 billion in stock this quarter.
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