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BofA recognizes pretax impairment charge of $2.1B in Q3'19

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BofA recognizes pretax impairment charge of $2.1B in Q3'19

Bank of America Corp. recognized a noncash, pretax impairment charge of about $2.1 billion in the quarter ending Sept. 30 in connection with Banc of America Merchant Services, its merchant services joint venture with First Data Corp.

The charge, which is presented in other general operating expense, is expected to reduce BofA's common equity Tier 1 ratio by 10 basis points, according to a filing. It will have no effect on the company's capital plan for the period beginning July 1, 2019, through June 30, 2020.

BofA and First Data, which was acquired by Fiserv Inc. in July, previously announced that they will pursue independent merchant services strategies beginning June 2020, when the contract for their joint venture concludes. The two companies agreed to continue providing uninterrupted services and products to the joint venture and its clients through at least June 2023.