Bank of America shares rise after adding $5 billion to buyback

Key Points
  • Bank of America announces additional share repurchase of $5 billion.
  • That's on top of a larger, $12 billion repurchase announced earlier this year; both buyback plans are set to last through June 2018.
  • Shares were up 0.3 percent midday Tuesday.
Bank of America CEO Brian Moynihan.
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Shares of Bank of America rose 0.3 percent in Tuesday midday trading after the bank announced it would be buying back an additional $5 billion worth of shares.

The board of directors approved the additional repurchase, which will occur through June 2018. The company had previously announced plans to repurchase $12 billion in common stock earlier this year.

In a statement from Bank of America, the repurchase program "will be subject to various factors, including the company's capital position, liquidity, financial performance and alternative uses of capital, stock trading price, and general market conditions, and may be suspended at any time."

Bank of America shares are 31 percent higher this year, with a 4 percent jump in the last one month alone, as investors bet that banks will be one of the top beneficiaries of tax reform.

CEO Brian Moynihan is speaking at the Goldman Sachs financial services conference Tuesday morning and will also be appearing from there in an interview on CNBC.