Goldman, Wells Fargo to boost Q3 dividends after 2022 stress test

Jun. 27, 2022 5:23 PM ETWells Fargo & Company (WFC), GSBAC, C, JPMBy: Liz Kiesche, SA News Editor30 Comments

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  • After all 34 of the largest banks operating in the U.S. passed the Federal Reserve's stress test last week, banks are now allowed to disclose their dividend and stock buyback plans.
  • Goldman Sachs (NYSE:GS) plans to increase its common stock dividend to $2.50 per share from its current level of $2.00 per share. The Fed notified that firm that its stress capital buffer of 6.3% results in a standardized Common Equity Tier 1 ratio requirement of 13.3%, which will be effective Oct. 1, 2022. Last year, Goldman's (GS) SCB was 6.4% resulting in CET1 ratio requirement of 13.4%.
  • Wells Fargo (NYSE:WFC) expects to boost its Q3 common stock dividend to $0.30 per share from $0.25 after its SCB was indicated to be 3.2%, up from 3.1% indicated a year ago. In addition, the bank said it has "significant capacity to execute on common stock repurchases, which will be routinely assessed."
  • Last week, Bank of America (BAC), Citigroup (C), and JPMorgan (JPM) screened poorly in Fed's 2022 stress test

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