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Bank of America Completes Fed's 2022 Stress Test, to Increase Quarterly Dividend by 5%

Stock Markets Jun 27, 2022 17:36
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© Reuters.

By Davit Kirakosyan

Bank of America Corporation (NYSE:BAC) completed the Federal Reserve's 2022 Comprehensive Capital Analysis and Review (CCAR) and announced plans to increase its quarterly common stock dividend by 5% to $0.22 per share, beginning Q3/22.

Based on the 2022 CCAR results, the company’s stress capital buffer (SCB), effective from October 1, 2022, to September 30, 2023, when finalized, will be approximately 100 bps higher than the current 2.5% level and will therefore add approximately 100 bps to the CET1 minimum requirement of 9.5%.

According to Alastair Borthwick, the CFO of the company, the 2022 stress test results once again support that the company maintains a strong capital position to serve its customers and clients through the current economic environment and is well prepared for a severe economic stress scenario.

In October 2021, Bank of America renewed the previously announced $25 billion common stock purchase program with $17 billion remaining as of March 31, 2022.

Bank of America Completes Fed's 2022 Stress Test, to Increase Quarterly Dividend by 5%
 

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