Bank Stocks Jumped Premarket, with Morgan Stanley Rising 3.5%
Tiger Newspress2022-06-28
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."
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
