BAC, C, JPM, WFC: 2015 CCAR Test Results


The Fed Reserve released CCAR or Comprehensive Capital Analysis and Review test results for the major banks including JPMorgan Chase & Co.(NYSE:JPM), Bank of America Corp (NYSE:BAC), Citigroup Inc (NYSE:C), and Wells Fargo & Co (NYSE:WFC). The pass or fail CCAR test results incorporate the Bank’s capital return plans into the Fed’s Street Tests.

The Federal Government did not object to the capital plans of 28 of 31 bank holding companies. Bank of America Corp (NYSE:BAC) received a conditional non-objection on qualitative grounds.  The Federal Reserve also objected to Deutsche Bank Trust and Santander Holdings USA plans on qualitative grounds, giving them a fail.

Here are the results for the major banks.

Bank of America Corp

The Fed Reserve did not reject Bank of America Corp (NYSE:BAC)‘s plan but is requiring the institution to submit a new capital plan by the end of the third quarter to address certain weaknesses in its capital planning processes. However, the company can move forward with boosting its dividends or stock buybacks. The Fed also stressed that the deficiencies do not undermine the quantitative results but warrant further near-term attention.

The Bank authorized a $4 billion common stock repurchase program.

Citigroup Inc

Citigroup Inc (NYSE:C) announced it will increase its dividend to $0.05 per share and a common stock repurchase plan of up to $7.8 billion. The dividend increase is subject to approval by the Board of Directors.

JPMorgan Chase & Co.

JPMorgan Chase & Co.(NYSE:JPM) announced that it will increase its dividend to 44 cents per share from 40 cents and authorized a share repurchase of up to $6.4 billion. The share buyback authorization is good April 1st, 2015 through June 30th, 2016.

Wells Fargo & Co

Wells Fargo & Co (NYSE:WFC) announced it will raise its dividend 7 percent to $0.375 per share. The bank also announced that it will continue its strong share repurchase activity. 

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