JPMorgan and Morgan Stanley increase share buybacks as rivals take smaller steps

JPMorgan Chase and Morgan Stanley mentioned Friday that they have been boosting each dividend payouts and share repurchases, whereas rivals Citigroup and Financial institution of America made extra modest bulletins.

JPMorgan, the largest U.S. financial institution by belongings, mentioned it was elevating its quarterly dividend 8.7% to $1.25 per share and that it licensed a brand new $30 billion share repurchase program.

Morgan Stanley, a dominant participant in wealth administration, mentioned it was boosting its dividend 8.8% to 92.5 cents per share and licensed a $20 billion repurchase plan.

Citigroup mentioned it was elevating its dividend 5.7% to 56 cents per share and that it might “proceed to evaluate share repurchases” on a quarterly foundation.

Financial institution of America mentioned it was growing its dividend 8% to 26 cents per share; its launch made no point out of share repurchases.

The massive banks introduced their plans to spice up capital return to shareholders after passing the annual stress take a look at administered by the Federal Reserve this week. Whereas all 31 banks on this yr’s examination confirmed regulators they may face up to a extreme hypothetical recession, JPMorgan mentioned Wednesday that it might have greater losses than the Fed initially discovered.

Nonetheless, that would not affect its capital-return plan, the New York-based financial institution mentioned Friday.

“The power of our firm permits us to repeatedly put money into constructing our companies for the longer term, pay a sustainable dividend, and return any remaining extra capital to our shareholders as we see match,” JPMorgan CEO Jamie Dimon mentioned in his firm’s launch.

JPMorgan’s dividend improve was its second this yr, Dimon famous.