JPM, WFC, MS boost bank dividends after Fed stress test
JPM, WFC, MS boost bank dividends after Fed stress test

JPMorgan Chase CEO Jamie Dimon interviewed by Jim Cramer on February 23, 2023.

CNBC

America’s largest banks include JPMorgan, FuGuo bank and Morgan Stanley They said on Friday they plan to raise their quarterly dividends after passing the Fed’s annual stress test.

New York-based JPMorgan Chase & Co said in a statement that it planned to raise its dividend per share from $1 to $1.05 starting in the third quarter.

“The Fed’s 2023 stress test results show that banks are resilient even in the face of severe shocks and continue to serve as the financial system’s and better pillar of the broader economy.” “The board’s anticipated dividend increase represents a sustainable and modestly higher level of capital distribution to shareholders.”

Wells Fargo said it would raise its dividend to 35 cents a share from 30 cents, and Morgan Stanley said it would raise its dividend to 85 cents a share from 77.5 cents a share.

On Wednesday, the Fed released the results of its annual exercise, saying all 23 participating banks had cleared regulatory hurdles. The test shows how much capital a bank can return to shareholders through buybacks and dividends. In this year’s exam, the bank experienced a “severe global recession”, with unemployment soaring to 10 per cent, commercial property values ​​falling 40 per cent and house prices down 38 per cent.

While investors welcome higher dividends, the bank has not announced specific plans to increase share buybacks.

The story is developing. Please check for updates.

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