10 Top Banks to Repurchase $125 Billion in Stock Over Next 12 Months

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JPMorgan
> Share Buybacks: $29.4 billion
> Percentage of Market Cap: 8.2%

JPMorgan Chase & Co. (NYSE: JPM) confirmed that the Federal Reserve Board did not object to its capital plan for 2019. J.P. Morgan Chase’s board intends to increase the quarterly common stock dividend to $0.90 per share from the current $0.80 payout per share. It further authorized gross repurchases of up to $29.4 billion in the four-quarter period for new common equity repurchases.

Morgan Stanley
> Share Buybacks: $6.0 billion
> Percentage of Market Cap: 8.2%

Morgan Stanley (NYSE: MS) received no objection to its 2019 capital plan, which includes the repurchase of up to $6.0 billion of outstanding common shares for the four-quarter period, an increase from $4.7 billion for the comparable similar period in the 2018 capital plan. Morgan Stanley also will raise its quarterly common stock dividend to $0.35 per share from the current $0.30.

State Street
> Share Buybacks: $2.0 billion
> Percentage of Market Cap: 9.6%

State Street Corp. (NYSE: STT) was approved to increase its dividend and a new common stock purchase program. Its capital plan proposes an increase to the quarterly dividend to $0.52 per share from $0.47 on the common stock. Additionally, its board has approved a new common stock purchase program of up to $2.0 billion.

US Bancorp
> Share Buybacks: $3.0 billion
> Percentage of Market Cap: 3.6%

U.S. Bancorp (NYSE: USB) will recommend in July that its board of directors approve a quarterly dividend increase to $0.42 per common share (up 13.5%), and this is expected to increase the annual dividend equivalent to $1.68 per common share. It also has approved a four-quarter authorization to repurchase up to $3.0 billion of its common stock.

Wells Fargo
> Share Buybacks: $23.1 billion
 Percentage of Market Cap: 9.6%

Wells Fargo & Co. (NYSE: WFC) expects to increase its third-quarter dividend to $0.51 per common share from $0.45. The plan also includes common stock repurchases of up to $23.1 billion for the four-quarter period under the plan. In addition, Wells Fargo’s board of directors may consider redemptions or repurchases of other capital securities as part of the plan.

After you add all these up, the grand tally comes to $124.64 billion, without factoring in any rounding errors. The combined market cap of $1.3264 trillion implies that these 10 top bank holding companies alone will be repurchasing about 9.4% of their outstanding common shares over the next 12 months.

The table below shows the billions of dollars these banks plan to spend on buybacks and dividends, as well as the market capitalization of each bank. The outstanding shares used to tally the data came from Nasdaq quote pages. Again, these numbers are static based on closing data from June 27, 2019, and the numbers will change slightly as the share counts change.

Bank Buybacks Dividends Market Cap
Bank of America $30.90 $6.85 $269.60
BNY Mellon $3.94 $1.18 $41.70
Capital One $2.20 $0.75 $42.00
Citigroup $17.10 $4.71 $157.90
Goldman Sachs $7.00 $1.83 $72.80
JPMorgan $29.40 $11.68 $355.50
Morgan Stanley $6.00 $2.35 $72.90
State Street $2.00 $0.77 $20.70
US Bancorp $3.00 $2.67 $82.60
Wells Fargo $23.10 $9.17 $210.70
Total $124.64 $41.96 $1,326.40

Note: All figures are in billions.

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