BofA Shares More Than Double for Year as CEO Boosts Capital |
| Bloomberg - Dec 18, 2012 |
Bank of America Corp., the best performer in the Dow Jones Industrial Average for 2012, has more than doubled since the start of the year as the company rebuilds capital and investor confidence.
Bank of America climbed 1.4 percent to $11.15 at 10:33 a.m. in New York, bringing its advance for this year to 101 percent. The second-largest U.S. lender by assets has more than quadrupled since February 2009 when the stock sold for $2.53 during the credit crisis amid speculation it would be nationalized.
Chief Executive Officer Brian T. Moynihan has targeted $8 billion in annual cost cuts and is boosting capital at the Charlotte, North Carolina-based firm, in part by selling more than $60 billion in assets since he took over in 2010. Moynihan said Dec. 4 he’s confident Bank of America will pass the next round of U.S. stress tests, a move that could open the way for a higher dividend or share buybacks.
“Given the improvement in Bank of America’s capital ratios over the past year we now believe it is highly likely that it will return capital in 2013,” Richard Staite, an analyst with Atlantic Equities LLP, said in a Dec. 13 note. Excess capital will “reduce the perception of risk,” making the company “our top pick among U.S. banks,” he wrote.
Read Full Article from Bloomberg
- Posted: 2012-12-18 15:06:48
| More Stock Investor Place Company News |
 |
|
|
|
| Stock Investor Place Company News Archive |
|
|
|
