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Morgan Stanley said it would double the dividend and increase the size of its share repurchase program to $ 12 billion after the U.S. Federal Reserve last week eased restrictions on shareholder payments by large banks.
The bank raises the quarterly common share dividend to 70 cents per 35-cent share and will buy up to $ 2 billion more from its own shares over the next 12 months, after committing to a repurchase of up to $ 10 billion.
“The board of directors has approved a 100% increase in our dividend and an increase in our share repurchase program to $ 12 billion,” said CEO James Morgan, who added that the bank had ” has accumulated a significant excess of capital in recent years and now has one of the largest capital buffers in the industry ”.
Morgan Stanley shares gained 3% in out-of-hours trading in New York.
Morgan Stanley is the first major US bank to define how much money it plans to return to shareholders after the Fed released its results on Thursday “Stress tests”. The central bank concluded that the 23 banks included in the year could suffer nearly $ 500 billion in combined losses and still comfortably meet capital requirements.
This is a developing story. More to follow.
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