(LR) Brian Moynihan, Chairman and CEO of Bank of America; Jamie Dimon, chairman and CEO of JPMorgan Chase; and Jane Fraser, CEO of Citigroup; Testimony during a Senate Banking Committee hearing in the Hart Senate Office Building in Washington, DC, on December 6, 2023.
Saul Loeb | Afp | Getty Images
JPMorgan Chase And Morgan Stanley said on Friday that it would increase both dividend payouts and share buybacks, while rivals Citigroup And Bank of America made more modest announcements.
JPMorgan, the largest U.S. bank by assets, said it increased its quarterly dividend by 8.7% to $1.25 per share and approved a new $30 billion share buyback program.
Morgan Stanley, a dominant player in asset management, said it raised its dividend 8.8% to 92.5 cents per share and approved a $20 billion buyback plan.
Citigroup said it would increase its dividend by 5.7% to 56 cents per share and that it would “continue to evaluate share repurchases on a quarterly basis.”
Bank of America said it would increase its dividend by 8% to 26 cents per share. Share buybacks were not mentioned in the release.
Major banks announced their plans to increase returns to shareholders after passing the Federal Reserve’s annual stress test this week. While all 31 banks in this year’s review showed regulators that they could withstand a severe hypothetical recession, JPMorgan said Wednesday that they could suffer larger losses than the Fed had initially estimated.
However, this would not affect its capital return plan, the New York-based bank said on Friday.
“The strength of our business allows us to continually invest in building our businesses for the future, paying a sustainable dividend and returning any remaining excess capital to our shareholders as we see fit,” JPMorgan CEO Jamie Dimon said in the release of his company.
JPMorgan’s dividend increase was the second this year, Dimon noted.
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2024-06-28 22:43:31
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