Finance
JPMorgan and Morgan Stanley are boosting share buybacks as rivals make smaller moves
(L-R) Brian Moynihan, chairman and CEO of Bank of America; Jamie Dimon, chairman and CEO of JPMorgan Chase; and Jane Fraser, CEO of Citigroup; testify during a Senate Banking Committee hearing at the Hart Senate Office Building in Washington, DC, on December 6, 2023.
Saul Loeb | Episode | Getty Images
JPMorgan Chase And Morgan Stanley said Friday they were increasing both dividend payouts and share buybacks, despite being rivals Citi Group And bank of America made more modest announcements.
JPMorgan, the largest U.S. bank by assets, said it would increase its capital quarterly dividend 8.7% to $1.25 per share and that it has approved a new $30 billion share buyback program.
Morgan Stanley, a dominant player in asset management, said yes increasing its dividend 8.8% to 92.5 cents per share and approved a $20 billion buyback plan.
Citigroup said it increased its dividend by 5.7% to 56 cents per share and that it would “continue to assess share buybacks” on a quarterly basis.
according to Bank of America it increased its dividend by 8% to 26 cents per share. The publication made no mention of the share buyback.
The big banks announced their plans to increase capital returns to shareholders after passing the Federal Reserve’s annual stress test this week. Although all 31 banks in this year’s survey showed regulators they could withstand a severe hypothetical recession, JPMorgan said Wednesday it could suffer bigger losses than the Fed initially expected.
Still, that would not affect the capital return plan, the New York-based bank said Friday.
“The strength of our business allows us to continuously invest in building our businesses for the future, pay a sustainable dividend and return any remaining excess capital to our shareholders as we see fit,” said Jamie Dimon, CEO of JPMorgan, in his company’s statement. Edition.
JPMorgan’s dividend increase was the second this year, Dimon noted.
