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Bank of America Plans Buyback

The company will spend $12 billion.
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Bank of America (BAC) - Get Bank of America Corporation Report set plans to buy back up to $12 billion worth of stock over the next year and a half.

The Charlotte, N.C., financial-services giant said it would buy back as many as 200 million shares to return capital to shareholders. The bank had 4.6 billion shares outstanding as of March 31. Some 47 million shares remain under a previous buyback authorization passed last March.

"Over the last five years, our strong earnings growth has enabled Bank of America to return $46 billion in capital to our shareholders in the form of dividends and net share repurchases," said CEO Kenneth D. Lewis. "We expect to continue generating strong returns and will aggressively continue to return excess capital to our shareholders."

The bank also declared a 50-cent regular quarterly dividend, payable June 23 to shareholders of record June 2.

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The stock rose 28 cents Wednesday to $47.37.