Bank of America Stock Price, News & Analysis

Bank of America has reported a 90% decline in overdraft service fees for its consumer checking accounts in June and July, following significant changes to its overdraft policies. Key measures include eliminating non-sufficient funds fees and reducing overdraft fees from $35 to $10. Approximately 45% of new checking accounts are now SafeBalance accounts, which impose no overdraft fees. The bank aims to reduce consumer overdraft fees by 97% from 2009 levels by next year. Despite these changes, client overdraft fees accounted for less than 0.4% of total revenue in Q2 2022.

The partnership between Liberty Science Center (LSC) and Bank of America aims to enhance job readiness in STEM fields for underserved high school students in New Jersey. A two-year pilot program at James J. Ferris High School and Memorial High School focuses on cybersecurity skills, addressing the shortage of qualified professionals in this sector. The initiative targets 20-30 students from each school, providing them with valuable skills and potential job offers at Bank of America upon successful completion. This program is part of a broader effort to improve workforce readiness amid a growing demand for STEM jobs.

Apex Clean Energy has announced financing for the 224 MW Great Pathfinder Wind project, with a tax equity commitment from Bank of America. This project supports Meta through a power purchase agreement, marking Apex’s fifth collaboration with the tech giant. Upon completion, the wind facility in Iowa is expected to generate $73.9 million in local tax revenue and create nearly 300 jobs during construction. Apex aims to deliver over $50 billion in additional renewable energy projects, reinforcing its commitment to clean energy solutions.

Bank of America has announced the selection of five high school students from Northern New Jersey for its Student Leaders program, an eight-week paid internship aimed at developing workforce skills and civic engagement. Each student will earn $17 per hour and receive a Chromebook. The program has been running since 2004, recognizing 300 community-focused juniors and seniors annually across the U.S.

In July, Bank of America reported a 7% year-over-year increase in total payments, aligning with June's levels. However, median rent payments surged by 7.4%, impacting consumer spending, especially among younger households. Card spending per household rose by 5.3% but fell from June's 5.7%, while inflation pressures persisted. Notably, Gen Z households saw a 16% increase in rent payments, contrasting with only a 3% rise for Baby Boomers. Despite challenges, lower gas prices and retail promotions provided some consumer relief.

Bank of America has achieved the J.D. Power Certified Customer Service Program recognition for the 13th consecutive year, indicating its outstanding customer service experience in Corporate, Global Commercial, and Business Banking Services. The certification reflects a thorough evaluation of operations, including surveys and call assessments. Notably, Bank of America is one of only two companies to reach this milestone. The recognition underscores the bank's commitment to delivering exceptional client experiences across various economic settings.

Bank of America Corporation announced an increase in its quarterly cash dividend to $0.22 per share, up $0.01 from the previous quarter. This dividend is payable on September 30, 2022, to shareholders of record as of September 2, 2022. Additionally, the Board declared a dividend of $1.75 per share on its 7% Cumulative Redeemable Preferred Stock, Series B, payable on October 25, 2022. Bank of America continues to serve around 67 million clients and operates approximately 4,000 retail centers and 16,000 ATMs.

Bank of America has announced grants totaling $1.5 million to 28 nonprofits in New Jersey, focusing on workforce development and education. This initiative aims to help vulnerable communities address basic needs, including food access, as the state recovers from the COVID-19 pandemic. With an unemployment rate of 4.1%, higher than the national average, the bank emphasizes job creation and economic mobility. Since 2017, Bank of America has contributed $30 million to local organizations, reflecting its commitment to improving economic opportunities.

Bank of America reported its second-quarter 2022 financial results on July 18, showcasing its extensive services to 67 million clients through 4,000 retail centers and 16,000 ATMs. The financial institution is a leader in wealth management and corporate banking, operating in around 35 countries. For detailed insights, investors can access information on their Investor Relations website. A conference call with executives will discuss these results, available for replay until July 28.