Bank of America launches $40 billion stock buyback program.

Bank of America announced that its board has authorized a $40 billion stock repurchase program, set to take effect on August 1. This new buyback will replace the current authorization, which had approximately $9.1 billion remaining as of June 30. The Federal Reserve indicated last month that the largest U.S. banks have sufficient capital to withstand severe economic and market turmoil scenarios.

The newly approved buyback program will commence when the existing repurchase authorization expires. The previous $25 billion buyback plan, established in 2024, still had around $9.1 billion left as of June 30. Bank of America emphasized that this initiative reflects its commitment to returning excess capital to shareholders while balancing investments in future growth and stability. The announcement also included an 8 percent increase in the quarterly dividend to $0.28 per share, further demonstrating the bank’s robust capital position.

Historically, Bank of America’s buyback authorizations include a $25 billion plan in 2021, marking its first major post-COVID repurchase effort, and another $25 billion plan in 2024. The upcoming $40 billion authorization will be the largest in the bank’s history. Following the announcement, Bank of America shares rose about 1 percent in after-hours trading, as analysts noted increased shareholder return flexibility and a demonstration of surplus capital.

Source: Economymiddleeast