Wells Fargo, Bank of America Complete Stress Test

Wells Fargo & Company announced today that the 2022 Comprehensive Capital Analysis and Review (CCAR) stress test has been completed. The Company anticipates that its stress capital buffer (SCB) will be 3.2 percent, which reflects the percentage amount of additional capital that the Firm must retain beyond its minimum regulatory capital requirements.

Photo Insert: Bank of America also issued a statement on the Federal Reserve's 2022 CCAR conclusions and announced plans to increase its quarterly common stock dividend to $0.22 per share beginning in the third quarter of 2022.

The Federal Reserve Board (FRB) has stated that the Company's final SCB would be published by August 31, 2022.

The Company expects to enhance its common stock dividend to $0.30 per share from $0.25 per share in the third quarter of 2022, subject to approval by the Company's Board of Directors at its regularly scheduled meeting in July.

Furthermore, the Company has significant capacity to execute on common stock repurchases over the four-quarter period beginning third quarter 2022 and ending second quarter 2023, which will be routinely assessed as part of the Company's internal capital adequacy framework that takes current market conditions and other risk factors into account.

This year's CCAR stress test verified Wells Fargo's excellent capital position.

According to CEO Charlie Scharf. “We are well-positioned to support our customers and communities, while also continuing to return excess capital to shareholders through dividends and share repurchases.”

Bank of America also issued a statement on the Federal Reserve's 2022 CCAR conclusions today, and announced plans to increase its quarterly common stock dividend to $0.22 per share beginning in the third quarter of 2022. The dividend on common shares is subject to approval by the Company's Board of Directors.

Based on the outcomes, Bank of America's stress capital buffer (SCB) will be about 100 basis points higher than the current 2.5 percent level, adding approximately 100 basis points to our CET1 minimum requirement of 9.5 percent. This revised SCB, once finalized, will be in force from October 1, 2022 to September 30, 2023. Bank of America had $170 billion in regulatory CET1 capital and a CET1 ratio of 10.4 percent as of March 31, 2022.

Over the last decade, Bank of America has embraced a prudent growth strategy placing it in a great position to service its clients and deliver for shareholders.

Bank of America Chair and Chief Executive Officer Brian Moynihan shared, "In October 2021, we renewed the Company's previously announced $25 billion common stock purchase program with $17 billion remaining as of March 31, 2022, and today we are also announcing that we expect to increase the quarterly common stock dividend by 5% to $0.22 per share."

Bank of America Chief Financial Officer Alastair Borthwick added that "the 2022 annual stress test results once again support that Bank of America maintains a strong capital position to serve its customers and clients through the current economic environment and our continued discipline around risk has us well prepared for a severe economic stress scenario."

WEEKLY FEATURE : MVP Group Keeps Lights On During Pandemic