JPMorgan unveils $50B buyback, Goldman Sachs raises dividend after Fed stress test
Jamie Dimon, chief executive officer of JPMorgan Chase & Co., during the Americas Business Forum in Miami, Florida, USA, on Thursday, November 6, 2025.
Eva Marie Uzcategui | Bloomberg | Getty Images
JPMorgan Chase It announced a new $50 billion share buyback program on Wednesday and increased its quarterly dividend after the Fed found the sector was well capitalized under its annual stress test.
The largest US bank by assets announced that it would increase its quarterly dividend by 10% to $1.65 per share, subject to board approval, and authorized a buyback program starting July 1.
“The board’s intended dividend increase is supported by our consistent investment in our business and strong financial performance,” JPMorgan CEO Jamie Dimon said in a statement. he said. “As always, we are prepared for a wide range of scenarios, including the hypothetical 2026 controller severe adverse scenario.”
Goldman Sachs Likewise, it increased its quarterly payout and said its dividend would rise 11% to $5 per share, citing the company’s strong earnings and capital position.
Wells Fargo said it expects to increase its dividend by 11% up to 50 cents per share Morgan Stanley increased its payout by 15% to $1.15 per share and also 20 billion dollars buyback program.
Bank of America CEO Brian Moynihan said in a statement that the bank will make an announcement about the company’s dividend next month.
The announcements follow the release of the Federal Reserve’s annual stress test; This test found that all 32 major banks remained above minimum capital requirements even after a hypothetical recession that caused an estimated loss of more than $708 billion in the industry.
However, unlike previous years, the results will not affect banks’ capital requirements. The Fed announced earlier this year that it would keep stress capital buffers unchanged through 2027 and overhaul its testing methodology; This means banks entered Wednesday with a clear understanding of their capital requirements.
In a sign of confidence, banks opted to continue payout increases despite regulatory uncertainty, although analysts expected this practice to have little impact.
In a note ahead of the results, KBW described this year’s stress test as “being on the move,” suggesting investors were more focused on the Basel III Endgame proposal expected later this year rather than the Fed’s annual implementation.
This story is developing. Please check back for updates.
