Written by Nobor Anand and Nichet Nishant
New York (Reuters) -Banker giants announced plans on Tuesday to raise their profits in the third quarter after clearing the annual health examination of the Federal Reserve last week.
The movements come after the lenders showed that they have enough capital to withstand scenarios including severe economic contraction, contestants and market turmoil.
JPMorgan Chase, the country’s largest bank, raised its profits to $ 1.50 per share from $ 1.40, according to an organizational report. It also announced a new program to purchase the shares worth $ 50 billion, valid on Tuesday and with an unlimited end date.
Jimmon, CEO of JPMorgan, said: “The increase in the profits of the council, the second we have this year, is a sustainable level of capital distribution to our shareholders and supported by our strong financial performance,” said Jimmy Damon, CEO of JPMorgan.
“The new shares re -purchase program provides the ability to distribute capital to our shareholders over time, as we see suitable,” Damon said, adding that the stress test shows that the banks are flexible.
Separately, Bank of America will raise its profits by 8 % to 28 cents per share, while Wales Vargo Zade to 45 cents per share of 40 cents, they said in separate files.
The Morgan Stanley Board of Directors approved a new program to purchase the shares of $ 20 billion without specifying the expiry date and is also planning to raise its quarterly profits to one dollar per share.
Goldman Sachs profit distributions will reach $ 4 from $ 3, while Citigroup will rise to 60 cents from 56 cents.
On average, the stress test at the Federal Reserve found that banks maintain 11.6 % on average of the capital of shared shares 1, much higher than the minimum 4.5 % required by the organizers. All six largest banks in the country retained all two -digit capital rates.
Federal Reserve in the process of repairing the test method.
In April, the organizer suggested that the results should be calculated over two years, which may lead to lower fluctuations in the results.
“The Federal Reserve has expressed his intention to create a more transparent and fair approach in these tests, as he looks forward to supporting the safety of our financial system and safety,” said David Solomon, CEO of Goldman.
Dimon from JPM also said that new stress test models can provide more transparency.
This rules writing project is still ongoing, but the central bank said on Friday that if the average results of 2025 and 2024 are calculated, banks will need to allocate more capital to meet the requirements.
New profits distributions for the bank (for every old profit
https://media.zenfs.com/en/reuters-finance.com/f77565c445bc2ad26fcb8ba5131bcc3a
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