(From left) Brian Moynihan, Chairman and CEO of Bank of America; Jamie Dimon, Chairman and CEO of JPMorgan Chase; Jane Fraser, CEO of Citigroup; They testify during a Senate Banking Committee hearing in the Hart Building of the Senate in Washington, D.C., on December 6, 2023.
Saul Loeb | AFP | Getty Images
J.P. Morgan Chase And Morgan Stanley It said on Friday it was working to boost dividends and buy back shares, while rivals Citigroup And American bank He made more modest announcements.
JPMorgan, the largest U.S. bank by assets, said it would raise its quarterly dividend by 8.7% to $1.25 per share, and that it authorized a new $30 billion stock buyback program.
Morgan Stanley, the dominant player in wealth management, said it would increase its dividend by 8.8% to 92.5 cents a share and authorized a $20 billion share buyback plan.
Citigroup said it would raise its dividend by 5.7% to 56 cents per share and would “continue to evaluate share repurchases” on a quarterly basis.
Bank of America said it would raise its dividend by 8% to 26 cents a share. Its release made no mention of a share buyback.
Big banks announced plans to boost capital returns to shareholders after passing the annual stress test administered by the Federal Reserve this week. While all 31 banks under this year's examination have shown regulators they can withstand a severe hypothetical recession, JPMorgan said Wednesday it could suffer higher losses than the Fed initially found.
The New York-based bank said on Friday that this would not affect its capital return plan.
“The strength of our company allows us to continue investing in building our business for the future, pay a sustainable dividend, and return any remaining excess capital to our shareholders as we see fit,” JPMorgan CEO Jamie Dimon said in a statement.
Dimon pointed out that the increase in JP Morgan's profits is the second this year.
