(Reuters) - The U.S. Federal Reserve on Wednesday approved capital plans of large U.S. banks, giving them a green light to use extra capital for share buybacks and dividends.
The Fed said all of the 34 banks had passed the tougher part of its annual stress test, showing that many of the biggest lenders have not only built up adequate capital levels but also improved their risk management procedures.
The result of the stress test was followed by statements from the banks detailing how they plan to use the extra capital. Of the big six banks in the United States, Goldman Sachs was the only one that did not announce the details of its capital plan.
** JPMorgan Chase & Co
— Plans to raise quarterly dividend to $0.56/share from $0.50/share, effective Q3
— Plans up to $19.4 billion in buyback
** Morgan Stanley
— Increases quarterly dividend to $0.25 per share from $0.20, effective Q3
— Announces share repurchase of up to $5 bln
** Wells Fargo & Co
— Plans to increase dividend to $0.39/share from $0.38/share, effective Q3
— Plans to buy back up to $11.5 billion of common stock
** Bank of America Corp
-- Plans to increase quarterly dividend by 60 percent to $0.12/share (bit.ly/2s3mXVL)
— Board authorized repurchase of $12 billion in common stock
** Citigroup Inc
— Plans to increase quarterly dividend to $0.32/share from $0.16/share
— Plans share repurchase of up to $15.6 billion
** Goldman Sachs Group Inc
-- CEO Lloyd Blankfein said "We are well positioned to continue to return capital to our shareholders" (bit.ly/2s3laQG)
Reporting by Sweta Singh in Bengaluru; Editing by Shounak Dasgupta