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Big Banks Boost Dividends After Passing Fed Stress Test

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All 32 large banks subject to the Federal Reserve's annual stress test have sufficient capital to absorb losses totaling nearly $708 billion and continue lending to businesses and households under hypothetical stressful conditions, the Fed said Wednesday.

Under the severely adverse scenario, the aggregate common equity tier 1 capital ratio of the 32 banks falls to its projected minimum of 11.2% from an actual 12.8% in Q4 2025, before rising to 12.7% at the end of the projection horizon.

"The aggregate and individual bank post-stress CET1 capital ratios remain above the required minimum regulatory levels throughout the projection horizon," the Fed said.

JPMorgan Chase (JPM), Goldman Sachs (GS) and Morgan Stanley (MS) all boosted their dividends shortly after the results were announced.

Price: $339.10, Change: $+5.65, Percent Change: +1.69%

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