Bank of America announced a $40 billion stock buyback starting August 1
The post Bank of America announced a $40 billion stock buyback starting August 1 appeared on BitcoinEthereumNews.com. Bank of America is throwing serious cash at its stock. The firm just launched a $40 billion buyback program, lighting a fuse under its shares, which jumped 1% in late New York trading on Wednesday. The board gave the green light for the new plan to start right after August 1, once the current repurchase scheme wraps up. That older one, set at $25 billion last year, had $9.1 billion left in capacity by the end of June. This new move scraps that old plan and goes bigger. The company said the buyback gives them “additional capital return flexibility.” Translation? They’ve got more cash than they need and are pumping it back into their stock. The official line: it’s about balancing support for economic growth, future investments, and shareholder returns without losing financial strength. Sounds nice on paper, but the real story is they’re piling money into shares while still sitting on solid earnings. Bank of America falls short on revenue but beats profit forecast Alongside the buyback announcement, Bank of America reported its second quarter earnings. It was a mixed bag. The bank posted 89 cents per share, beating the 86 cents expected by analysts at LSEG. But the total revenue of $26.61 billion missed the $26.72 billion that was forecast. The miss was mostly thanks to net interest income (NII), which came in at $14.82 billion, about $70 million short of what StreetAccount had projected. NII is what the bank earns from loans and investments minus what it pays depositors. It still rose 7% year-over-year, but lower interest rates took a bite out of what could’ve been stronger growth. Despite that, the bank still grew its profit to $7.12 billion, which was up 3% from the same period last year. CEO Brian Moynihan tried to steer attention toward…
The post Bank of America announced a $40 billion stock buyback starting August 1 appeared on BitcoinEthereumNews.com.
Bank of America is throwing serious cash at its stock. The firm just launched a $40 billion buyback program, lighting a fuse under its shares, which jumped 1% in late New York trading on Wednesday. The board gave the green light for the new plan to start right after August 1, once the current repurchase scheme wraps up. That older one, set at $25 billion last year, had $9.1 billion left in capacity by the end of June. This new move scraps that old plan and goes bigger. The company said the buyback gives them “additional capital return flexibility.” Translation? They’ve got more cash than they need and are pumping it back into their stock. The official line: it’s about balancing support for economic growth, future investments, and shareholder returns without losing financial strength. Sounds nice on paper, but the real story is they’re piling money into shares while still sitting on solid earnings. Bank of America falls short on revenue but beats profit forecast Alongside the buyback announcement, Bank of America reported its second quarter earnings. It was a mixed bag. The bank posted 89 cents per share, beating the 86 cents expected by analysts at LSEG. But the total revenue of $26.61 billion missed the $26.72 billion that was forecast. The miss was mostly thanks to net interest income (NII), which came in at $14.82 billion, about $70 million short of what StreetAccount had projected. NII is what the bank earns from loans and investments minus what it pays depositors. It still rose 7% year-over-year, but lower interest rates took a bite out of what could’ve been stronger growth. Despite that, the bank still grew its profit to $7.12 billion, which was up 3% from the same period last year. CEO Brian Moynihan tried to steer attention toward…
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