Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Nyse  >  Bank of America    BAC

Mes dernières consult.
Most popular
Real-time Quote. Real-time Cboe BZX - 04/20 10:03:34 pm
30.27 USD   +0.30%
09:35pU.S. banks push mortgage apps as home lending slows
06:35pBANK OF AMERICA : Why Mike Pence is coming to Charlotte on Friday
02:35pG4S looks beyond small change in cash revolution
News SummaryMost relevantAll newsofficial PublicationsSector newsTweets

Bank of America : Banks cite tax reform in giving raises, bonuses

share with twitter share with LinkedIn share with facebook
share via e-mail
01/03/2018 | 09:08pm CEST

Jan. 03--Whether the new corporate tax cuts should be labeled "supply-side" or "trickle down" economics, major banks in Memphis and across the South say they are passing along some of the savings to their employees and markets.

Regions and SunTrust banks have announced in the past several days they are raising their hourly minimum wage to $15 and applying part of the tax savings in other ways.

Memphis-based First Tennessee credited the tax reform for a one-time bonus it has given employees.

For Regions, the $15-an-hour minimum wage is 25 percent more than the $12 the bank pays most of its lowest earning workers and 47 percent more than its formal lowest wage of $10.15 an hour.

In Memphis, where the Birmingham-based bank has branches and a customer service center, the wage hike will affect about 400 employees. About a quarter of all Regions employees will benefit, bank officials said.

In addtion, Regions announced it will contribute $40 million to the company's charitable foundation for financial education, job training, economic development and affordable housing.

And Regions will increase its capital expenditures budget by about $100 million, or 50 percent, over the 2017 level for investments in facilities, technology, product innovation, and customer service.

The bank's press release tied the wage hikes, charitable giving and capital investments to the substantial new corporate tax cuts approved last month. The corporate tax rate is dropping from 35 percent to 21 percent.

"Regions is making these investments in anticipation of the savings it will recognize as a result of federal tax reform intended to support economic growth," the bank's press release states.

SunTrust's chief executive also credited tax reforms for his bank's actions.

"The anticipated benefits from tax reform allow us to build upon our purpose of Lighting the Way to Financial Well-Being in a sustainable way by implementing actions that will have a multi-year impact for many of the constituents that count on us," SunTrust's Bill Rogers said in a release.

"We believe tax reform will improve the competitiveness of American business and promote economic growth, and this gives us confidence to invest more in our company, our teammates and the communities we serve."

SunTrust will make another $50 million in community grants to financial well-being programs, give merit-based raises to "certain other hourly" employees comprising about 20 percent of its workforce, make a 1 percent contribution to the company's 401(k) retirement funds for all employees in addition to the usual match of up to 6 percent, and fund a $1,000 financial incentive for all employees who complete a financial fitness program.

The federal minimum wage has remained at $7.25 an hour since 2009. The bump by the banks comes at a time when some groups have been organizing and protesting to establish a "living wage" of $15 an hour.

That amount would provide a yearly income of $31,200, assuming a 40-hour work week.

Economist David Ciscel, a University of Memphis professor emeritus, has told The Commercial Appeal, "It takes $30,000 to $40,000 per year to be free of poverty-like conditions for a family of three."

In recent years, the "vast majority" of Regions' hourly positions paid $12 or more an hour, bank spokesman Jeremy D. King told The Commercial Appeal by email.

"Officially, our minimum wage has been $10.15 per hour since October 2014; however, again, most positions were at $12 or more since then," he said.

The Regions jobs affected by the increase could range from various entry-level positions at bank branches such as certain telller positions to jobs at the customer service and operations centers, King said.

Asked how much much money Regions Bank anticipates saving as a result of the tax cuts, King said, "We are still evaluating the total savings.

First Tennessee Bank cited the tax reform in giving its employees a one-time bonus. The Memphis-based bank did not reveal its minimum hourly wage.

"First Tennessee pays above minimum wage in all our markets and we offer competitive compensation packages to employees across our footprint," said John Daniel, executive vice president and chief human resources officer for First Horizon National Corp., parent company of First Tennessee.

"We are pleased to have moved so quickly to reward our employees with one-time bonuses following the recent tax reform legislation and we continue to use some of the tax savings to invest in our people," Daniel said.

Regions chairman and chief executive Grayson Hall said in his bank's release this week, "We understand that the growth of our company is based on the economic vitality of the communities where we do business, as well as the work from our team of talented associates who are committed to serving our customers every day.

"The investments we are announcing today in our workforce, our communities and our company reflect our commitment to creating shared value and will support sustainable growth that ultimately benefits our customers and shareholders."

The wage increase will help provide "sustainable career paths and professional growth opportunities for all associates," the Regions Bank statement says.

Bank of America, whose market share in Tennessee and Memphis is 7 and 4 percent, respectively, gave all its U.S. employees who make up to $150,000 a year a $1,000, one-time bonus after tax reform was approved, spokesman Matthew Daily said.

Last February, long before the tax cuts, Bank of America increased its minimum wage from $13.50 to $15 an hour.

A number of other large banks, including BB&T Corp., PNC Financial Services, Wells Fargo and Fifth Third Bancorp also are raising employee wages and benefits or making other investments thanks to the tax cut, Housingwire reported this week.


(c)2018 The Commercial Appeal (Memphis, Tenn.)

Visit The Commercial Appeal (Memphis, Tenn.) at www.commercialappeal.com

Distributed by Tribune Content Agency, LLC.

© Tribune Content Agency, source Regional News

share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on BANK OF AMERICA
09:35pU.S. banks push mortgage apps as home lending slows
06:35pBANK OF AMERICA : Why Mike Pence is coming to Charlotte on Friday
02:35pG4S looks beyond small change in cash revolution
02:34pDBRS Publishes 'U.S. Capital Markets Banks Kick Off 2018 With a Bang'
12:21pPhoto Release -- WSFS Bank Amplifies Team that Oversees its Retail Office Net..
10:55aBANK OF AMERICA : Cyber Team Named Best by SC Magazine
04:15aBANK OF AMERICA : Political play
04:15aBANK OF AMERICA : Raised Profile
04/19BANK OF AMERICA : and Cornell University Launch the Bank of America Institute fo..
04/19BANK OF AMERICA : Cyber Team Named Best by SC Magazine
More news
News from SeekingAlpha
08:01aBANK OF AMERICA : Buy The Dip, It Will Not Last 
02:58aVilas Fund, LP Q1 '18 Letter To Partners - #28 Since Inception, Long Pharma 
01:42aBANK OF AMERICA : The 'One-Time' Benefit That Is Also A Long-Term Tailwind 
04/19The Banking Industry Kicks Off Earnings Season With Record Profits 
04/193 Methodologies To Estimate Banking Stocks' Fair Value 
Financials ($)
Sales 2018 92 792 M
EBIT 2018 38 294 M
Net income 2018 26 029 M
Debt 2018 -
Yield 2018 1,95%
P/E ratio 2018 11,88
P/E ratio 2019 10,50
Capi. / Sales 2018 3,26x
Capi. / Sales 2019 3,11x
Capitalization 302 B
Duration : Period :
Bank of America Technical Analysis Chart | BAC | US0605051046 | 4-Traders
Technical analysis trends BANK OF AMERICA
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 31
Average target price 34,3 $
Spread / Average Target 14%
EPS Revisions
Brian T. Moynihan Chairman, President & Chief Executive Officer
Catherine P. Bessant Co-COO & Chief Technology Officer
Thomas Kell Montag Co-Chief Operating Officer
Paul M. Donofrio Chief Financial Officer
Thomas J. May Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
BANK OF AMERICA0.03%302 496
WELLS FARGO-16.65%245 706
BANK OF CHINA LTD-4.79%213 000