Benzinga's Federal Reserve Stress Test Recap

The Federal Reserve released the results of its annual Comprehensive Capital Analysis and Review, commonly know as the stress test on U.S. banks.

The report is from the Fed’s second round of stress testing this year. The first round’s results were announced on June 22.

Wednesday’s test results were divided into two portions, qualitative and quantitative. The tests are used to assess whether the banks are able to maintain sufficient levels of capital under severe situations similar to those of the Great Recession.

The tests further take into account the banks’ plans to distribute capital to investors, and determines whether or not they are capable of weighing the risk those plans carry.

All banks with $50 billion or more in assets are tested, but the most rigorous portions of the stress test are only applied to banks with assets valued at over $250 billion.

For the third year in a row, all 34 banks were deemed capable of handling a severe recession, and for the first time ever every bank’s capital distribution plans were given the stamp of approval.

Banks Respond To The Results

Benzinga Pro provided its subscribers with real-time coverage of the banks’ capital distribution announcements following the results.

This feed contains announcements from the 28 banks that had reported as of 5:45 p.m. ET.

• Bank Of America BAC Raises Qtr. Dividend From $0.075/Share To $0.12/Share, Announces $12B Share Buyback
• Citi C Raises Qtr. Dividend From $0.16/Share To $0.32/Share, Announces $15.6B Share Buyback
• JPMorgan Chase JPM Reports No Objection On '17 Capital Plan, Includes Increase In Qtr. Dividend From $0.50/Share To $0.56/Share, Announces $19.4B Share Buyback
• State Street STT Issues Release Highlighting Fed Did Not Object To Co.'s Capital Plan For Increase In Qtr. Dividend From $0.38 To $0.42/Share, $1.4B Buyback Plan
• Territorial Bancorp TBNK Declares $0.10/Share Special Mid-Year Cash Dividend
• Wells Fargo WFC Announces Received No Objection For '17 Capital Plan Which Includes Increase In Qtr. Dividend From $0.38 To $0.39/Share, $11.5B In Buybacks
• Ally Financial ALLY Reports Non-Objection On '17 Capital Plan, Includes Increase In Qtr. Dividend From $0.08 To $0.12/Share, $760M Buyback Plan
• Fifth Third FITB Reports No Objection From Fed On Capital Plan Which Includes Increase In Qtr. Dividend From $0.14 To $0.16/Share, $1.161B In Buybacks
• Morgan Stanley MS Reports No Objection On '17 Capital Plan Which Includes Increase In Qtr. Dividend From $0.20 To $0.25/Share, $5B In Buybacks
• Capital One COF Reports CCAR Capital Plan Received Conditional Non-Objection, Sees $1.85B In Buybacks, Qtr. Dividend Maintained At $0.40/Share
• US Bancorp USB Receives No Objection For '17 Capital Plan, Includes Increase In Qtr. Dividend From $0.28 To $0.30/Share, $2.6 In Buybacks
• American Express AXP To Increase Qtr. Dividend From $0.32/Share To $0.35/Share, Buyback $4.4B Common Stock
• BB&T BBT Raises Qtr. Dividend From $0.30/Share To $0.33/Share, Buyback $1.88B Common Stock
• Bank of New York Mellon BK Raises Qtr. Dividend From $0.19/Share To $0.24/Share, Announces $3.1B Share Buyback
• Regions Financial RF Reports No Objection From Fed On '17 Capital Plan, Includes Increase In Qtr. Dividend From $0.07 To $0.09/Share, $1.47B In Buybacks
• KeyCorp KEY Raises Qtr. Dividend From $0.095/Share To $0.105/Share, Announces $800M Share Buyback
• Citizens Financial CFG Raises Qtr. Dividend From $0.14/Share To $0.18/Share, Announces $850M Share Buyback
• CIT Group CIT Raises Qtr. Dividend From $0.15/Share To $0.16/Share, Announces $225M Share Buyback
• PNC Financial PNC Raises Qtr. Dividend From $0.55/Share To $0.75/Share, Announces $2.7B Share Buyback
• Zoons Bancorp ZION Reports No Objection On '17 Capital Plan, Includes Increase In Qtr. Dividend From $0.08 To $0.12/Share In Q3'17, To $0.16 In Q4'17, To $0.20 In Q1'18, To $0.24 In Q2'18, $465M In Buybacks
• SunTrust Banks STI Reports No Objection To '17 Capital Plan, Includes Increase In Qtr. Dividend From $0.26 To $0.40/Share, $1.32B In Buybacks
• Banco Bilbao Vizcaya Argentaria BBVA Announces $200M In Dividends Planned Following Fed Reserve Stress Test
• Northern Trust NTRS Reports No Objection On '17 Capital Plan, Includes Increase In Qtr. Dividend From $0.38 To $0.42/Share, $750M In Buybacks
• Comerica CMA Raises Qtr. Dividend From $0.26/Share To $0.30/Share, Announces $605M Share Buyback
• M&T Bank MTB Raises Qtr. Dividend From $0.75/Share To $0.80/Share, Announces $900M Share Buyback
• Huntington Bancshares HBAN Reports No Objection For '17 Capital Plan, Includes Increase In Qtr. Dividend From $0.08 To $0.11/Share, $308M In Buybacks
• Santander Consumer USA SC Reports Q4 Dividend $0.03/Share, $0.05/Share Dividend In Q1 and Q2 2018
• Discover Financial DFS Raises Qtr. Dividend From $0.30/Share To $0.35/Share, Announces $2.23B Share Buyback