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Bank of America (NYSE:BAC) is planning to boost its quarterly common stock dividend by 8% to $0.28 per share starting in Q3 2025, it said on Tuesday, after clearing the Federal Reserve’s annual stress test.
Under current Fed rules, BofA’s (NYSE:BAC) preliminary stress capital buffer would improve 70 basis points to 2.5%, and its common equity tier 1 minimum capital requirement would be 10.0%, effective Oct. 1, 2025.
If the Fed’s recently proposed modifications to the SCB calculation are adopted, Bank of America’s (BAC) would be subject to an SCB of 2.7%, which would make its new CET1 minimum ratio 10.2%, effective Jan. 1, 2026.
As of March 31, 2025, BAC had $201B of regulatory CET1 capital and a CET1 ratio of 11.8%, which surpasses the current minimum requirement.
BAC shares edged up 0.2% in after-hours trading.
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