Bank of America Corp (NYSE: BAC) said on Monday that it could add as much as $13 billion to its overall book value as the lock-up period on its 11% stake in China Construction Bank will expire in less than 12 months.
According to a Bloomberg report, the investment from Bank of America was previously valued around $9.2 billion; however, the stake will be reported as having a market value of $22.9 billion during the firm’s third quarter earnings statement.
The news comes on the heels of a disclosure from the bank that it had taken $10 billion in charges as a result of new financial regulations.
Bank of America Corporation is a bank holding company, and a financial holding company. The Company is a financial institution, serving individual consumers, small and middle market businesses, large corporations and governments with a range of banking, investing, asset management and other financial and risk management products and services. Through its banking subsidiaries (the Banks) and various nonbanking subsidiaries throughout the United States and in selected international markets, it provides a range of banking and nonbanking financial services and products through six business segments: Deposits, Global Card Services, Home Loans & Insurance, Global Banking, Global Markets, Global Wealth & Investment Management (GWIM), with the remaining operations recorded in All Other. On January 1, 2009, the Company completed the acquisition of Merrill Lynch.
Shares of Bank of America Corp (NYSE: BAC) traded down 1.62% hitting $13.69 during mid-day trading on Tuesday.
