JPMorgan Unveils $50 Billion Buyback, Lifts Dividend 10% After Fed Stress Test
Updated
Updated · CNBC · Jun 24
JPMorgan Unveils $50 Billion Buyback, Lifts Dividend 10% After Fed Stress Test
2 articles · Updated · CNBC · Jun 24
Summary
JPMorgan authorized a $50 billion share repurchase program effective July 1 and said it plans to raise its quarterly dividend 10% to $1.65 a share, pending board approval.
The move followed the Federal Reserve's annual stress test, which found all 32 large U.S. banks stayed above minimum capital requirements even under a hypothetical downturn producing more than $708 billion in losses.
This year's test carried less immediate regulatory weight because the Fed is keeping stress capital buffers unchanged through 2027 while it rewrites the methodology, giving banks unusual clarity on capital requirements.
Goldman Sachs raised its dividend 11% to $5 a share, Wells Fargo said it expects an 11% increase to 50 cents, and Morgan Stanley lifted its payout 15% to $1.15 while reauthorizing a $20 billion buyback.
Analysts had largely expected little market impact from the exercise, with investor attention shifting to the Basel III Endgame proposal due later this year.