H&R Block, the Kansas City-based tax services provider, announced Tuesday that it will begin buying back $3.5 billion of its stock, or roughly 40 percent of the company’s current market value.
The buyback program, which Block CEO Bill Cobb called a “bold and aggressive move toward our future,” will take place over four years. Buyback programs generally serve to increase the value of shares that remain in existing investors’ hands.
Block also announced Tuesday it has completed the sale of the H&R Block Bank to BofI Federal Bank. The deal frees Block from federal regulation regarding bank holding companies; those regulations had forced Block to keep more capital on hand than it needed.