Bank of America (BAC) just revealed a downward revision to its previously announced regulatory capital ratios and a suspension of its share buyback.
The revision was apparently due to an incorrect adjustment related to its 2009 acquisition of Merrill Lynch & Co., Inc.
“As a result, the company is making the following adjustments to the previously announced estimated preliminary capital ratios for the first quarter ended March 31, 2014: the estimated Basel 3 Standardized transition common equity tier 1 capital ratio was revised to 11.8 percent, down 5 basis points; the estimated tier 1 capital ratio was revised to 11.9 percent, down 21 basis points; the estimated total capital ratio was revised to 14.8 percent, down 21 basis points; and the estimated tier 1 leverage ratio was revised to 7.4 percent, down 12 basis points,” the company said Monday.
BofA shares are down more than 4% in premarket trading following the release.
The company said it would suspend its previously announced 2014 capital actions, including $4 billion stock buyback program and the planned increase in its quarterly dividend from $0.01 per common share to $0.05 per share after the miscalculation.