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Wall Street is preparing another bumper payday for shareholders after the biggest US banks cleared the Federal Reserve’s annual stress tests. JPMorgan, Goldman Sachs, Citigroup, Wells Fargo, and Morgan Stanley all announced dividend increases within hours of the results, Bloomberg reports.
The payouts keep getting bigger: The six largest US banks returned more than USD 140 bn to shareholders through dividends and buybacks last year, surpassing the previous record set in 2019. The lenders also posted their strongest combined bottom lines since 2021, helped by record trading revenue.
This year’s exam came with a twist: Unlike previous years, banks no longer have to wait before announcing capital plans while the Fed overhauls the exercise. The agency said there is “no expectation” that lenders delay public disclosures of planned capital actions through 3Q 2027 — and separately froze stress-capital buffers until 2027, meaning this year's exam won't affect capital requirements.
The tests still matter: Introduced after the 2008 financial crisis, the tests measure whether banks could keep lending through a severe recession and market shock. But the annual review has become less onerous in recent years, with regulators moving toward a more bank-friendly framework.
JPMorgan led the payouts: JPMorgan lifted its quarterly dividend to USD 1.65 a share from USD 1.50 and authorized a fresh USD 50 bn buyback. Meanwhile:
- Goldman Sachs raised its payout to USD 5 from USD 4.50;
- Citigroup to USD 0.67 from USD 0.60;
- Wells Fargo to USD 0.50 from USD 0.45;
- Morgan Stanley to USD 1.15 from USD 1;
- Bank of America said it will announce its next quarterly dividend after its July board meeting and had almost USD 23 bn remaining on its buyback plan at the end of March.
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EGX30 |
51,443 |
-0.5% (YTD: +23.0%) |
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USD (CBE) |
Buy 49.47 |
Sell 49.60 |
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USD (CIB) |
Buy 49.45 |
Sell 49.55 |
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Interest rates (CBE) |
19.00% deposit |
20.00% lending |
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Tadawul |
10,933 |
-0.7% (YTD: +4.2%) |
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ADX |
9,880 |
+0.0% (YTD: -1.2%) |
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DFM |
6,018 |
-0.1% (YTD: -0.5%) |
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S&P 500 |
7,354 |
-0.1% (YTD: +7.4%) |
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FTSE 100 |
10,508 |
-0.2% (YTD: +5.8%) |
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Euro Stoxx 50 |
6,222 |
-0.7% (YTD: +7.3%) |
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Brent crude |
USD 71.99 |
-4.3% |
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Natural gas (Nymex) |
USD 3.28 |
-0.5% |
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Gold |
USD 4,096 |
+1.2% |
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BTC |
USD 60,193 |
+0.6% (YTD: -31.3%) |
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S&P Egypt Sovereign Bond Index |
1,068 |
+0.1% (YTD: +7.6%) |
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S&P MENA Bond & Sukuk |
152.60 |
0.0% (YTD: +0.5%) |
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VIX (Volatility Index) |
18.41 |
-2.5% (YTD: +23.1%) |
THE CLOSING BELL-
The EGX30 fell 0.5% at Thursday’s close on turnover of EGP 8.8 bn (1.2% above the 90-day average). Local investors were the sole net sellers. The index is up 23.0% YTD.
In the green: Emaar Misr (+1.0%), TMG Holding (+0.8%), and Orascom Investment Holding (+0.7%).
In the red: Orascom Construction (-7.0%), Qalaa Holdings (-3.0%), and Edita (-2.8%).
