Capital One said on Tuesday that it plans to repurchase up to $1 billion of shares of company common one stock after the sale closing of its Best Buy private label and co-branded credit card accounts.
The Federal Reserve said the company would be able to repurchase shares through next March, contingent on the sale of its Best Buy portfolio, which is expected to be completed in the third quarter.
The amount of common stock repurchases depends on a number of factors, including market conditions, internal capital generation, the closing of the Best Buy portfolio sale and the company’s capital position.
The repurchase program does not include specific price targets, but it may be executed through either privately negotiated transactions or open-market purchases.
After Capital One passed the Fed’s stress tests in March, the central bank authorized the company to increase its quarterly dividend in May to $0.30 per share from $0.05 per share, Fox Business reports.
The company is expected to release it second-quarter financial results on July 18. Capital One’s profits shrank by 24 percent in the first quarter, though they still exceeded expectations.