(Updates to indicate photo availability) By Saeed Azhar, Tatiana Bautzer and Nupur Anand NEW YORK, June 30 (Reuters) – US banks including JPMorgan Chase, Wells Fargo, Goldman Sachs and Morgan Stanley raised their third-quarter earnings on Friday after sailing. Through the Fed’s annual health check, which showed that they had enough capital to weather a severe economic downturn. JPMorgan, the largest lender in the United States, plans to increase its quarterly dividend to $1.05 a share from $1.00 currently. The companies said Wells Fargo would increase its dividend to 35 cents a share from 30 cents. Goldman Sachs’ dividend will rise to $2.75 per share from $2.50, while Morgan Stanley will rise to 85 cents per share from 77.5 cents currently. Citigroup’s earnings will rise to 53 cents per share, from 51 cents. Banks have announced dividend increases after passing the Fed’s stress test, which determines how much capital they have to put aside before they can return money to shareholders. Under the Fed’s scenario of a major recession, the 23 banks tested — including JPMorgan, Bank of America and Goldman Sachs — would collectively suffer $541 billion in losses, while still holding more than twice the amount of capital. required money. America’s largest banks have remained resilient despite the failures of three large regional banks that roiled the industry earlier this year. The big banks have kept pace even as the Federal Reserve raises interest rates to tame inflation, which could tip the economy into recession. “The results show that these banks are able to withstand severe stress and maintain a capital buffer above the regulatory minimum, which is a credit positive,” ratings agency Moody’s Investors Service said in a note. Citigroup CEO Jane Fraser said in a statement that it repurchased $1 billion in common stock during the second quarter and will continue to evaluate capital actions each quarter. Citigroup’s capital buffer (SCB) requirement rose to 4.3%, from 4.0% currently, in contrast to its large peers whose SCB is down. The savings and credit bank’s size, an additional layer of capital introduced in 2020 that is added to banks’ minimum capital requirements, reflects how well the bank performed on the test. “While we would have clearly preferred not to see an increase in our troubled capital reserves, these results continue to demonstrate Citi’s financial resilience in all economic environments,” said Fraser. Analysts expected banks to remain conservative given the uncertain economic environment as they prepare for international capital rules that could be announced as early as this summer. Previous New Bank JPMorgan Chase $1.05 $1.00 Goldman Sachs $2.75 $2.50 Citigroup $0.53 0.51 Morgan Stanley $0.85 0.775 Wells Fargo $0.35 $0.30 (Reporting by Saeed Azhar, Nupur Anand, and Tatiana Bautzer; Editing by Michelle Price, Lanan Nguyen, and Richard Changian-Krav)
