Largest U.S. Banks, including JPMorgan Chase, Wells Fargo, and Morgan Stanley, Plan to Raise Dividends After Passing Fed Stress Test

Large U.S. Banks Plan to Raise Dividends After Clearing Stress Test

Introduction

Large U.S. banks, including JPMorgan Chase, Wells Fargo, and Morgan Stanley, announced plans to raise their quarterly dividends after passing the Federal Reserve’s annual stress test.

JPMorgan Chase

JPMorgan plans to increase its payout per share from $1 to $1.05 starting in the third quarter of this year, according to a statement from the bank. CEO Jamie Dimon emphasized the resilience of banks in withstanding severe shocks and their contribution to the financial system and economy.

Wells Fargo

Wells Fargo will raise its dividend from 30 cents to 35 cents per share.

Morgan Stanley

Morgan Stanley plans to boost its payout from 77.5 cents to 85 cents per share.

Other Banks

Goldman Sachs announced the largest per share increase, raising its dividend to $2.75 from $2.50. Citigroup announced a smaller increase, raising its quarterly payout to 53 cents from 51 cents.

Implications

The stress test results indicate the financial resilience of these banks, allowing for sustainable and modestly higher levels of capital distribution to shareholders. However, banks are expected to be more cautious with capital-return plans this year due to increased international banking regulations and the potential for higher loan losses in a potential recession.

Conclusion

This story is still developing. Please check back for updates.

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