US Banks Raise Dividends After Stress Test Success

Major U.S. banks, including JPMorgan Chase, Bank of America, Wells Fargo, Morgan Stanley, and Bank of New York Mellon, announced dividend increases and large share repurchase programs after all 22 banks assessed passed the Federal Reserve's 2025 stress tests. The tests showed that the six largest banks maintained double-digit capital ratios, well above regulatory minimums, underscoring the sector's strong capital position. JPMorgan raised its dividend to $1.50 per share alongside a $50 billion buyback, while Bank of America increased its dividend by 8% to 28 cents per share. Bank of New York Mellon plans a 13% dividend increase, highlighting its stable payout record and strong balance sheet. The Federal Reserve has eased some stress test requirements and is considering further changes to reduce volatility in future results. These developments affirm confidence in the resilience and stability of the U.S. banking system.