Bank of America's board approved the repurchase of as much as $800 million in shares, joining JPMorgan Chase and Capital One Financial this year in returning more capital to shareholders.
Bank of America's repurchases are in addition to the $4 billion announced a year ago, the Charlotte, N.C.-based company said Friday in a regulatory filing. The latest buyback is to offset share dilution that would otherwise result from incentive-compensation awards, according to the filing.
"The Federal Reserve did not object to the corporation's proposed repurchases," Bank of America, the second-biggest U.S. lender, said in the filing.
JPMorgan said Thursday it can buy back an additional $1.8 billion through June in addition to $6.4 billion approved by the Fed in last year's capital plan. Capital One added a $300 million authorization in February.
"Any way you look at this, it translates to a net positive for JPMorgan, both fundamentally positive as a means to redeploy excess capital and equally as positive as a signal of how far this bank, and the industry broadly, has come in complying with the new regulatory framework," Credit Suisse Group said in a note Thursday after JPMorgan's announcement.
Shares of Bank of America rose 10 cents to $13.50 at 8 a.m. in early New York trading. They dropped 20% this year through Thursday.