Saturday, June 29, 2019

Banks reward shareholders with billions in buybacks, dividend hikes after Fed approval

Post annual CCAR banks win approval for 10s of $Bs of capital redistribution; some pretty big amounts here:

JPMorgan JPM, +2.72% , the nation’s largest bank by assets, said it plans to buy back $29.4 billion in shares this cycle. It would also increase its dividend 12.5% to 90 cents a share. In total, JPMorgan would return roughly $40 billion to shareholders through dividends and stock repurchases over the next year. 
Wells Fargo WFC, +2.23% announced plans to buy back $23.1 billion in stock the next year and increase its dividend 13.3% to 51 cents a share. The bank remains under investigation by state and federal authorities for abusive banking practices. 
Citigroup C, +2.76% said it would buy back $17.1 billion in stock next year and also plans to increase its dividend to 13.3% to 51 cents a share.

I'd assume BofA will do something similar to these other 3 of the big 4.

System was still able to increase bank credit YoY by about $750B to about $13.5T  even with these amounts of distributions due to the current perhaps unprecedented YoY increase in fiscal flow of over 7%.

About a  6% YoY increase in bank credit; not too shabby even with the moron induced chaos in bank reserve asset policy wildly fluctuating by +/- $300B over short periods throughout the year.