Bank of America Statement on Federal Reserve’s 2020 Comprehensive Capital Analysis and Review

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.

Forward-looking statements
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.