NEW YORK (Reuters) – Financial institution of America (BofA) mentioned on Wednesday it deliberate to lift its quarterly dividend in frequent inventory from 22 cents per share beginning within the third quarter of 2023 to 24 cents per share.
BofA, not like different main US banks, had postponed a dividend choice final week. Rivals JPMorgan Chase, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley raised their third-quarter dividends on Friday after passing the Federal Reserve’s stress check.
BofA had engaged in a dialogue with the Fed to know the differing outcomes between the central financial institution’s stress check and people of the businesses underneath the Dodd-Frank Act.
BofA, the second-largest U.S. financial institution, mentioned on Wednesday that talks are nonetheless ongoing.
The Fed’s annual check discovered that main lenders, together with BofA, have sufficient capital to climate a critical financial stoop, paving the way in which for inventory buybacks and dividends.
Final 12 months, BofA raised its dividend to 22 cents per share, the very best degree because the 32 cents paid in 2008 and up from 21 cents in 2021.
(Reporting by Jaiveer Singh Shekhawat in Bengaluru and Saeed Azhar in New York; enhancing by Shailesh Kuber and Jamie Freed)
