U.S. banks expected to pass stress tests easily, increase dividends and buybacks

From Quiver Quantitative: 2025-06-25 01:16:00

The largest U.S. banks are expected to easily pass the Federal Reserve’s stress tests this year, thanks to strong capital positions and a more lenient regulatory scenario. With lighter economic shocks and smaller declines in GDP and asset prices, banks are projected to increase dividends by around 3% on average and ramp up share buybacks. Regulatory tweaks and averaging results over multiple years will reduce volatility in capital requirements, providing banks with more flexibility. Analysts anticipate a stable capital planning environment in the future, allowing banks to focus on growth and rewarding shareholders.



Read more at Quiver Quantitative: U.S. Banks (JPM) Poised for Higher Buybacks as Fed Softens Stress Tests