US firms blast through CCAR and boost payouts
All of the 34 banks taking this year’s Federal Reserve stress tests passed for the first time in the test’s history. For the European-owned firms, that reflects concerted efforts to improve their qualitative processes, while for the major US firms, the result has set off a bonanza of capital returns.
Citi and JP Morgan are seen as seen as the big winners from the process, with Citi announcing an $18.9bn capital return, representing 122% of consensus earnings, and JP Morgan announcing a $19.4bn capital return, 99% of consensus earnings.Research from Nomura’s Instinet brokerage said: “[It's] approval suggests ...
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