Overview

• Major U.S. banks announced third-quarter dividend increases and multibillion-dollar share repurchase programs after passing the Fed’s 2025 stress tests.
• The Federal Reserve found banks held an average 11.6% common equity Tier 1 ratio under a severe economic downturn scenario, well above the 4.5% minimum.
• JPMorgan Chase raised its dividend to $1.50 per share and authorized a $50 billion buyback, while Morgan Stanley approved a $20 billion repurchase and a dividend hike to $1.
• Wells Fargo and Goldman Sachs saw their stress capital buffers revised downward by the Fed, freeing up additional capital for shareholder returns.
• The Fed’s ongoing rule-making on averaging two years of stress-test results is designed to reduce year-to-year swings in buffer requirements.