JPMorgan raises capital buffers after stress test and keeps third-quarter dividend of $1 a share

JPMorgan Chase & Co.
JPM,
-0.80%
shares rose 0.3% in aftermarket trading on Monday after the bank said it will keep its third-quarter dividend at $1 a share as it channels more capital to complete the Federal Reserve’s 2022 annual stress test process. The bank’s stress capital buffer (SCB) requirement is now 4%, up from the current 3.2% and its Standardized Common Equity Tier 1 capital ratio requirement including regulatory buffers is 12%, up from 11.2%. The Federal Reserve will provide the bank with its final SCB requirement by Aug. 31, effective on Oct. 1 through Sept. 30, 2023. JPMorgan said its board plans to maintain its third-quarter dividend flat “in light of higher future capital requirements,” the company said. In April, JPMorgan’s board authorized a new common equity share repurchase program of $30 billion, effective May 1. This program remains in place.