Major US banks raise dividends after undergoing stress test

The four major U.S. banks – Morgan Stanley, Goldman Sachs, Bank of America and Wells Fargo – announced dividend increases on Monday (June 27) after they were tested. Crisis (Stress Test)

Goldman Sachs announced it would increase its dividend 25% to $2.50 a share, while Morgan Stanley announced plans to increase its dividend to 77.5 cents a share and plans to buy back 20 billion shares. dollar

The Bank of America raised its dividend by 5% to 22 cents a dollar and Wells Fargo announced plans to increase its dividend to 30 cents a share from 25 cents a share.

Reuters reported that The news sent Morgan Stanley shares up 3.5 per cent and Goldman Sachs jumping 1.4 per cent in after-hours trading on the New York Stock Exchange early on Wednesday.

JPMorgan stated that The bank will keep its dividend payout figure at $1/share and Citigroup has confirmed it will keep the dividend figure at 51 cents a share, stating that the challenging economic environment may mean the bank will need to boost its capital in the future.

The Federal Reserve (Fed) released its results from its annual banking crisis test on June 23, saying most US banks have a strong capital base to cope with the growing economic climate. severely slowed down This will allow banks including JPMorgan Chase, Bank of America, Wells Fargo, Citigroup, Morgan Stanley and Goldman Sachs to use these surplus funds in a cryptocurrency. Share repurchase and dividend payment to shareholders

The Fed’s Stress Test covers whether banks are safe to implement their capital spending plans. which includes the payment of dividends and other expenses other than the provision for bad debts The test was aimed at avoiding the use of public tax money to carry banks as it did during the 2007-2009 financial crisis.