JPMorgan, Citi, Bank of America, and Wells Fargo are all boosting their earnings

Some of the largest banks in the United States have announced plans to boost their profits after passing the Federal Reserve’s latest stress test.

JPMorgan Chase (JPM) is Increase its profits The bank’s stock price rose from $1.15 to $1.25. The bank’s board of directors also approved a $30 billion share buyback plan.

Bank of America (BAC) It is reinforcement Its earnings to $0.26 per share from $0.24, Citigroup (C) earnings are going to $0.56/share from $0.53, Wells Fargo (WFC) dividend Rises to $0.40 from $0.35.

Yahoo Finance anchor Julie Heyman Breaking down the numbers in the video above.

For more expert insights and the latest market action, click here to watch this full episode of Ask the Trend.

This post was written by Stephanie Mikulic.

Video Text

The largest US banks unveiled their capital plans after stress test results earlier this week.

Julie Hyman is back with us here with the latest details.


so what?

Basically, what we have now is all the major banks telling us what their earnings will be and what their share buyback plans are.

So let me give you the headlines first and then explain what’s going on here and why we’re learning about this now.


Let’s Begin.

A quarterly dividend of 56 cents per share is planned here.

This is an increase in the company’s earnings here by a few cents here we have JP.

Morgan says it plans to raise its quarterly dividend to $25 per share from $15 per share.

Morgan is also planning a new buyback plan of up to $30 billion.

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This is its new mandate that replaces its previous mandate.

Wells Fargo said it plans to raise its third-quarter dividend to 40 cents per share.

It’s a gain of about 14% for this company, and then you also have B of Bank of America which is also raising its dividend as part of this to 26 cents a share from 24 cents a share.

Why are we getting all this now?

Well, you know, because Jennifer Schumer has covered it every year.

Banks are required to undergo stress tests by the Federal Reserve.

This came into play during the financial crisis.

As you know, this ensured that banks had sufficient capital in case of an emergency.

So they model the Fed, they model it.

Everything will go to hell like it did during the financial crisis.

What will these banks look like?

Will they have enough capital to cover their losses?

Once these stress tests are passed, banks can come up with a plan to recover capital.

IE buybacks and dividends.

They submit it for approval, and they are approved.

Then they all announce it on the same day.

And this is where we are.

And that’s why, if you’re an investor in a major bank, you’re watching those stress tests?

Yes you were waiting.

What would you get back in terms of money?

So I just mentioned some of them.

But any bank you can think of today will come up with this information.

Well, if you are an investor in any of these banks, you should check it out.

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For example, Morgan Stanley, with a dividend of 92.5 cents, buys back up to $20 billion.

The fifth and third with his news in this as well.

So all the banks are out with Julie.

Thank you.

we appreciate that.

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