Bank Stocks Jumped Premarket, with Morgan Stanley Rising 3.5%

Bank Stocks Jumped Premarket, with Morgan Stanley Rising 3.5%.

Bank Of America, Goldman Sachs, Deutsche Bank and UBS Group climbed around 1%.

After all 34 of the largest banks operating in the U.S. passed the Federal Reserve's stress test last week, banks are now allowed to disclose their dividend and stock buyback plans.

Goldman Sachs plans to increase its common stock dividend to $2.50 per share from its current level of $2.00 per share. The Fed notified that firm that its stress capital buffer of 6.3% results in a standardized Common Equity Tier 1 ratio requirement of 13.3%, which will be effective Oct. 1, 2022. Last year, Goldman's (GS) SCB was 6.4% resulting in CET1 ratio requirement of 13.4%.

Wells Fargo expects to boost its Q3 common stock dividend to $0.30 per share from $0.25 after its SCB was indicated to be 3.2%, up from 3.1% indicated a year ago. In addition, the bank said it has "significant capacity to execute on common stock repurchases, which will be routinely assessed."