The results are out: 15 of the 19 US banks pass Federal Reserve stress test – Part 2

Bank of America

BofA cleared the stress test with 5.9% capital ratio. It is not believed to have proposed any additional capital returns after proposed dividend hike was rejected in 2011.

Capital One Financial

The institute passed stress test with 7.8% capital ratio.

Regions Financial

The bank passed stress test with 6.6% capital ratio, announced $900 million common stock offering to go toward repurchasing $3.5 billion in preferred shares owned by the the Treasury Department dating back to loans from the Troubled Asset Relief Program (TARP).

BB&T

It passed stress test with 6.4% capital ratio. Upped dividend 25% to 20 cents and said Fed did not object to planned redemption of $3.2 billion in trust preferred securities.

Fifth Third Bancorp

It passed stress test with 6.3% capital ratio.

Wells Fargo

With a straight 6% capital ratio, Wells Fargo cleared the test and added a 10-cent dividend to its previously announced first-quarter payout of 12 cents, an additional 83% that ups the firm’s quarterly dividend to 22 cents per share.

PNC Financial Services

They passed stress test with 5.9% capital ratio, said Fed cleared plan to raise dividend in Q2 and move forward with modest share repurchase under already-authorized program.

Goldman Sachs

Not as surprisingly Goldman passed stress test with 5.7% capital ratio. Said Fed does not object to its plan for buybacks and potential dividend hikes through Q1 2013.

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Posted by Usman Khalid on Mar 16 2012. Filed under Business. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.