The Strategist

Leading US banks to increase dividends after successful Fed stress tests

07/02/2024 - 10:38

Major US banks plan to boost their dividend payments to shareholders after passing the stress tests conducted by the Federal Reserve.

Can Pac Swire
Can Pac Swire
The Fed came to the conclusion that the banks could survive a significant economic downturn, and as a result, they intend to release excess capital to shareholders.

JPMorgan Chase & Co. intends to increase its quarterly dividend to $1.25 per share from $1.15 (up 8.7%); Morgan Stanley plans to increase from 85 cents to 92.5 cents (up 8.8%); Goldman Sachs Group plans to increase from $2.75 to $3; Citigroup plans to increase from 53 cents to 56 cents (up 5.7%); Bank of America Corp. plans to increase from 26 cents to 26 cents (up 8.3%); and Wells Fargo & Co. plans to increase from 35 cents to 40 cents (up 14.3%).

At that, the biggest bank in the United States, JPMorgan, authorized a fresh repurchase plan worth up to $30 billion for its stock, and Morgan Stanley verified a buyback plan with no time limit for up to $20 billion.

Citi stated that it "will continue to evaluate the conditions for buying back its shares from quarter to quarter".


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