Largest U.S. banks increase shareholder returns after passing Federal Reserve stress tests with strong capital levels.
JPMorgan Chase announced a $50 billion share repurchase program and raised its quarterly dividend by 10% to $1.65 per share. The moves follow the Federal Reserve’s annual stress test, which confirmed the bank’s strong capital position under severe economic scenarios.
Goldman Sachs also increased its dividend by 11% to $5 per share, citing robust earnings and capital strength. The Fed’s test found all 32 large banks remained above minimum capital requirements despite $708 billion in projected industry losses during a hypothetical recession.
The Fed’s decision to keep stress capital buffers unchanged through 2027 provided banks clarity on capital requirements ahead of the announcements.