Morgan Stanley said that after the Federal Reserve last week relaxed restrictions on the distribution of dividends to shareholders of large banks, it will double the dividend and increase the size of its stock repurchase program to $12 billion.
The bank raised its quarterly common stock dividend from 35 cents to 70 cents per share, and will repurchase up to US$2 billion of its own stock in the next 12 months. The bank has previously committed to implement up to US$10 billion. Repurchase plan.
“The board of directors has approved a 100% increase in our dividends and an increase in our share repurchase program to $12 billion,” said CEO James Morgan, adding that the bank “in the past few years It has accumulated a large amount of excess capital and now has one of the largest capital buffers in the industry”.
Morgan Stanley shares rose 3% in after-hours trading in New York.
Morgan Stanley is the first of many large banks in the United States. The bank will outline how much money they plan to return to shareholders after the Federal Reserve’s results are announced on Thursday. “pressure test”The central bank concluded that the 23 banks participating in this activity may suffer a combined loss of nearly US$500 billion, but they can still easily meet their capital requirements.
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