Citizens Financial boosts stock buyback program; U.S. Bancorp gets 2.5% SCB

Jun. 27, 2022 8:04 PM ETU.S. Bancorp (USB), CFGJPM, C, BACBy: Liz Kiesche, SA News Editor7 Comments

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  • After 34 of the largest banks operating in the U.S. passed the 2022 Federal Reserve stress test, the individual banks announced their capital return plans Monday after the close of trading.
  • Citizens Financial's (NYSE:CFG) plan includes increasing its common share repurchase authorization to $1.0B, $545 more than than the $455M of capacity remaining under its previous $750M authorization in January 2021. The board will also consider increasing its common stock dividend for Q3 2022. Its Q2 dividend was $0.39 per share.
  • CFG's Stress Capital Buffer ("SCB") is indicated at 3.4%. The bank has concluded that its proposed capital distributions would be consistent with the preliminary SCB requirement. It will assess potential changes to its distributions over the planning horizon as conditions warrant, the bank said.
  • U.S. Bancorp (NYSE:USB) expects to be subject to a preliminary SCB of 2.5%, unchanged from its current level and the lowest buffer allowed by the Fed. Additional capital distributions — through a potential common stock dividend increase or through resumption of share repurchases under its existing program — will be determined after closing its acquisition of MUFG Union Bank's core regional banking franchise.
  • The bank had suspended its common stock buybacks at the beginning of Q3 2021, except for those done exclusively in connection with its stock-based compensation programs.
  • Last week, Bank of America (BAC), Citigroup (C), and JPMorgan (JPM) screened poorly in the 2022 stress test

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