Bank of America (BAC) announced plans to repurchase an additional $5B in common stock by June 30, 2018.
The company previously announced plans on June 28 to repurchase $12B in common stock from July 1, 2017, through June 30, 2018, plus repurchases to offset shares awarded under equity-based compensation plans during the same period, estimated to be approximately $0.9B. The Board of Directors approved the additional repurchases.
The additional capital distribution offsets the increase in regulatory capital resulting from the previously announced issuance of common stock, upon Berkshire Hathaway’s (BRK-A, BRK-B) exercise of outstanding warrants, and sale of the non-U.S. consumer credit card business earlier this year. The Federal Reserve Board has informed the company that it has approved the additional repurchases.
