Bank of America plans to increase quarterly dividend 8% to 28c per share in Q3

Bank of America (BAC) commented on the results of the Federal Reserve’s 2025 Comprehensive Capital Analysis and Review and announced plans to increase its quarterly common stock dividend to 28c per share beginning in the third quarter of 2025. The 2025 stress test results indicated that Bank of America’s modeled capital depletion improved 100 bps to 170 bps. Capital depletion measures the difference between a firm’s CET1 capital ratios at the beginning and in the most stressed period of the test scenario. As a result, under current Federal Reserve rules, Bank of America’s preliminary stress capital buffer would improve 70 bps to 2.5%, and its CET1 minimum requirement would be 10.0%, effective October 1, 2025. The Federal Reserve recently proposed modifications to the SCB calculation. If those rule changes are adopted as proposed, Bank of America’s 2025 stress test results would indicate an SCB of 2.7%, which would make its new CET1 minimum ratio 10.2%, effective January 1, 2026. At March 31, 2025, Bank of America had $201B of regulatory CET1 capital and a CET1 ratio of 11.8%, which exceeds the current minimum requirement. The quarterly common stock dividend is subject to approval by Bank of America’s Board of Directors.