JPMorgan Chase unveils $50 billion buyback, Goldman Sachs raises dividend after Fed stress test
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- JPMorgan Chase unveiled a $50 billion share repurchase program effective July 1 and raised its quarterly dividend 10% to $1.65 per share, with CEO Jamie Dimon citing 'consistent investment' and 'strong financial performance' and noting the bank is 'prepared for a wide range of scenarios' including the 2026 supervisory severely adverse scenario
- Goldman Sachs raised its quarterly dividend 11% to $5 per share, citing strong earnings and capital position
- Morgan Stanley boosted its payout 15% to $1.15 per share and reauthorized a $20 billion buyback program
- Wells Fargo said it expects to raise its dividend 11% to 50 cents per share, while Bank of America CEO Brian Moynihan said his firm will announce its dividend decision next month
- The Federal Reserve's stress test found all 32 large banks remained above minimum capital requirements even under a hypothetical recession generating more than $708 billion in projected losses industry-wide
- Unlike prior years, the 2025 results will not affect banks' capital requirements — the Fed is keeping stress capital buffers unchanged through 2027 while it overhauls its testing methodology, meaning banks entered Wednesday already knowing their requirements
- KBW described this year's exercise as 'going through the motions' in a pre-results note, arguing investors are more focused on the pending Basel III Endgame proposal expected later this year than on the annual stress test
Why it matters: The coordinated payout increases — totaling tens of billions in buybacks and double-digit dividend hikes — signal that the largest U.S. banks feel confident enough in their capital positions to return capital to shareholders despite the Fed keeping stress capital buffers unchanged through 2027. With the stress test decoupled from capital requirements this cycle, KBW argues investors are already looking past it to the Basel III Endgame proposal expected later this year.
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