JPMorgan Chase on Wednesday unveiled a $50 billion share repurchase program and raised its quarterly dividend 10% to $1.65 per share after the Federal Reserve found the nation's biggest banks remained well capitalized under its annual stress test. Goldman Sachs announced an 11% dividend increase to $5 per share, citing strong earnings and capital position. The announcements followed the Fed's stress test results showing all 32 large banks remained above minimum capital requirements even after a hypothetical recession generating more than $708 billion in projected losses. The Fed said earlier this year it would keep stress capital buffers unchanged through 2027 while overhauling testing methodology, providing banks clarity on capital requirements ahead of the announcements.
JPMorgan Chase Authorizes $50 Billion Buyback and 10% Dividend Increase
The biggest U.S. bank by assets said it will increase its quarterly dividend 10% to $1.65 per share, subject to board approval, and authorized the buyback program effective July 1. "The Board's intended dividend increase is supported by our consistent investment in our business and strong financial performance," JPMorgan CEO Jamie Dimon said in a statement. "As always, we are prepared for a wide range of scenarios, including the hypothetical 2026 supervisory severely adverse scenario."
Goldman Sachs Raises Quarterly Dividend 11%
Goldman Sachs increased its quarterly payouts, saying that its dividend will rise 11% to $5 per share, citing the firm's strong earnings and capital position.
Fed Stress Test Finds 32 Banks Above Minimum Capital Requirements
The Federal Reserve's annual stress test found that all 32 large banks remained above their minimum capital requirements even after a hypothetical recession generating more than $708 billion in projected losses across the industry. Unlike in previous years, the results will not affect banks' capital requirements.
Fed Maintains Stress Capital Buffers Through 2027
The Fed said earlier this year it would keep stress capital buffers unchanged through 2027 while it overhauls the testing methodology, meaning banks entered Wednesday with a clear understanding of their capital requirements. In a note ahead of the results, KBW described this year's stress test as "going through the motions," arguing that investors are more focused on the pending Basel III Endgame proposal expected later this year than on the Fed's annual exercise.
FAQ
What did JPMorgan Chase announce on Wednesday?
JPMorgan Chase unveiled a $50 billion share repurchase program and raised its quarterly dividend 10% to $1.65 per share, with the buyback program effective July 1.
How did Goldman Sachs respond to the Fed stress test results?
Goldman Sachs announced an 11% dividend increase to $5 per share, citing the firm's strong earnings and capital position.
What did the Federal Reserve's stress test find?
The Fed's annual stress test found that all 32 large banks remained above their minimum capital requirements even after a hypothetical recession generating more than $708 billion in projected losses across the industry.
