Berkshire Hathaway's leading bank plans to dispersed $40 billion of their surplus funds to their shareholders.
Bank of America has announced a new $40 billion common stock repurchase program, effective from August 1, 2025. This program replaces the previous one, which was a $25 billion authorization and is set to expire on July 31, 2025. As of June 30, 2025, the prior program still had approximately $9.1 billion remaining for repurchases, but the new program offers full $40 billion for repurchases[1][3][5].
The newer program significantly expands the repurchase capacity by $15 billion (a 60% increase), signaling a strong capital position and shareholder-friendly approach by the bank. It is designed to provide the bank with flexibility to return excess capital not needed for economic growth while maintaining regulatory capital requirements[2][3].
In comparison, the previous program and the new program differ in several aspects:
| Aspect | Previous Program | New Program | |-------------------------------|---------------------------------|-----------------------------------| | Authorization Amount | $25 billion | $40 billion | | Expiry Date | July 31, 2025 | Effective August 1, 2025 | | Remaining Amount as of June 30, 2025 | $9.1 billion | Full $40 billion available | | Purpose | Capital return flexibility | Enhanced capital return flexibility| | Execution Conditions | Subject to capital, liquidity, financial performance, market conditions | Same conditions apply, with flexibility subject to capital, regulations, and market conditions |
In addition to the stock repurchase program, Bank of America's board of directors has also approved a dividend increase of $0.02, for a total of $0.28 per share[4]. The dividend is payable on September 26th to shareholders of record as of September 5th.
As of July 19, 2025, Bank of America has a market cap of $360.3 billion and is trading for $48.45 per share. The bank is one of the stocks in Warren Buffett's Berkshire Hathaway portfolio[6].
References: 1. Bank of America Announces New $40 Billion Common Stock Repurchase Program 2. Bank of America Announces New $40 Billion Common Stock Repurchase Program 3. Bank of America Announces New $40 Billion Common Stock Repurchase Program 4. Bank of America Announces Dividend Increase 5. Bank of America's Q2 Earnings Report 6. Berkshire Hathaway's Portfolio
- The banking-and-insurance sector, represented by Bank of America, continues to demonstrate a strong financial position, as evidenced by its $40 billion common stock repurchase program.
- With this expansion in repurchase capacity, Bank of America significantly boosts its potential for investing in various sectors, such as real-estate and cryptocurrency.
- As altcoins and cryptocurrency gain traction in the industry, traditional banking institutions like Bank of America are presented with the opportunity to leverage blockchain technology for enhanced operations.
- Amidst this evolving financial landscape, Bank of America's shareholders, including Warren Buffett, will continue to benefit from the bank's dividend increases and smart investing strategies.
