Latest news with #CCAR
Economist
31-07-2025
- Business
- Economist
The deeper reason for banking's retreat
In an earnings call on July 15th, Jamie Dimon, the boss of JPMorgan Chase, made a familiar complaint. He rattled off a litany of burdensome, overlapping regulations: 'SLR, G-SIFI, CCAR, Basel III, FSRT'. He then called on regulators to draw 'a deep breath', step back and take stock. Reform was necessary, he said, to 'create more liquidity, more loans and a safer system.'
Yahoo
10-07-2025
- Business
- Yahoo
The Charles Schwab Corporation (SCHW) Receives Results of Federal Reserve's 2025 CCAR
The Charles Schwab Corporation (NYSE:SCHW) is one of the The company received the results of the Federal Reserve's 2025 Comprehensive Capital Analysis and Review (CCAR). On the basis of these results, the company's calculated stress capital buffer (SCB) remains well below the 2.5% minimum, leading to the SCB at that floor. The 2.5% SCB will be applicable to Schwab for a four-quarter period beginning October 1, 2025. A corporate finance professional studying a financial performance chart. The Charles Schwab Corporation (NYSE:SCHW)'s Common Equity Tier 1 (CET1) ratio of 32% as of March 31, 2025 remained well in excess of the regulatory minimum of 4.5% combined with the SCB of 2.5% because of the relatively low risk nature of the company's balance sheet assets. The Charles Schwab Corporation (NYSE:SCHW)'s robust organic growth, mainly in Net New Assets, along with effective capital management, can benefit the shareholders. The core net new assets brought by new and existing clients saw an increase of 13% YoY in May 2025 to reach $35.0 billion. In Q1 2025, the company saw daily average trading volume grow by 17% quarter-over-quarter because of the sharp increase in market volatility. Baron Funds, an investment management company, released its Q1 2025 investor letter. Here is what the fund said: 'Strength in Financials came from specialty insurer Arch Capital Group Ltd. and brokerage firm The Charles Schwab Corporation (NYSE:SCHW). Schwab's shares outperformed for a second consecutive quarter, helped by an improved earnings outlook. After reaching trough levels last year, Schwab's cash balances continued to trend higher during the quarter. Investors believe Schwab will use these balances to pay down higher cost borrowings, which should drive net interest income and earnings higher.' While we acknowledge the potential of SCHW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-07-2025
- Business
- Yahoo
Wells Fargo to Raise Dividend Following CCAR Results
Wells Fargo & Company (NYSE:WFC) is among the . On Monday, Wells Fargo & Company (NYSE:WFC) announced that it has successfully executed the 2025 Comprehensive Capital Analysis and Review (CCAR) stress test process, with the Federal Reserve Board's (FRB) calculations led to a forecasted stress capital buffer (SCB) for the company below the minimum, expecting to raise the dividend by 12.5%. The planned rise in the common stock dividend, from $0.40 per share to $0.45 per share, in the third quarter of 2025, is subject to approval by the Board of Directors. This is one of the reasons why investors are looking forward to the shareholder meeting in July. Additionally, the repurchasing of common stock by Wells Fargo & Company (NYSE:WFC) is a part of the company's internal capital adequacy framework that examines the current market and regulatory environment. A team of bankers in suits, discussing the success of the company's banking products. The company anticipates its SCB to reduce to at least 2.5% from 3.8%, implying a percentage of incremental capital that Wells Fargo & Company (NYSE:WFC) must hold on top of its minimum regulatory capital requirements. While the final SCB is scheduled for August 31, 2025, the FRB's pending notice of the proposed rule would result in the company's expected SCB being 2.6% if finalized as proposed. Wells Fargo & Company (NYSE:WFC) is a California-based financial services company with four main segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth and Investment Management. The core offerings of the company include diversified banking, investment, mortgage, and consumer and commercial finance products and services. While we acknowledge the potential of WFC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. V READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
Yahoo
08-07-2025
- Business
- Yahoo
Morgan Stanley Lifts Dividend Ahead of Board Approval
Morgan Stanley (NYSE:MS) is among the . On Tuesday, Morgan Stanley (NYSE:MS) announced to raise its quarterly common stock dividend to $1.00, up from $0.925 per share, implying a surge of about 8.1%. This revision will become effective upon the anticipated approval by the Board of Directors during the third quarter of the current fiscal year. The company also unveiled that the Board has reauthorized a multi-year common equity share repurchase program of more than $20 billion, set to begin in the third quarter of 2025 with no fixed expiration date. As Ted Pick, Chairman and Chief Executive Officer of Morgan Stanley (NYSE:MS), outlined, 'We remain committed to consistently growing our quarterly dividend.' 4kclips/ This declaration was after the Federal Reserve released its Comprehensive Capital Analysis and Review (CCAR) 2025 results on June 27. Consequently, the financial services firm projects a Stress Capital Buffer (SCB) requirement of 5.1% from October 1, 2025, through September 30, 2026. Morgan Stanley (NYSE:MS) is a New York-based firm that provides financial products and services to governments, organizations, and individuals across the Americas, Asia, Europe, the Middle East, and Africa. Founded in 1924, the company adopts innovative strategies to assist its clients. While we acknowledge the potential of MS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
Globe and Mail
07-07-2025
- Business
- Globe and Mail
Does Capital One's Lower SCB Reflect Robust Capital Discipline?
Last week, Capital One COF announced that its preliminary Stress Capital Buffer (SCB) has been set at 4.5% by the Federal Reserve. This will be effective from Oct. 1, 2025, through Sept. 30, 2026. The requirement, determined through the 2025 Comprehensive Capital Analysis and Review (CCAR), is lower than the previously disclosed SCB of 5.5% in effect through Sept. 30, 2025. This preliminary SCB is pending final confirmation by the Fed, which is expected to be announced by Aug. 31, 2025. The development strengthens Capital One's financial position by increasing its capital flexibility. With less capital constrained by regulatory buffers, the company can allocate resources more efficiently toward strategic priorities, such as growth initiatives like acquisitions, product innovation and potential shareholder returns, including dividends and share repurchases. This optimized capital deployment supports higher returns on equity and bolsters long-term profitability. In April 2025, the Fed issued a notice of proposed rulemaking to revise how the SCB is calculated. Under the proposal, SCB requirements would be based on the average of stress test results over two consecutive years, rather than a single year. As a testament to its financial strength, in May, Capital One acquired Discover Financial in an all-stock deal valued at $35.3 billion, reshaping the credit card industry landscape, creating a behemoth and unlocking substantial value for shareholders. The company is now well-placed to capture a bigger share of spending on cards. Also, since July 2021, Capital One has maintained its quarterly dividend of 60 cents per share, with a payout ratio currently at 16% of earnings. Further, it has a share repurchase program in place. As of March 31, 2025, nearly $3.88 billion worth of repurchase authorization remained. How Capital One's Peers Fared in Terms of SCB A total of 22 financial institutions, including Capital One, were under this year's CCAR. Similar to COF, JPMorgan JPM noted that under the current SCB framework, the Fed has set its preliminary SCB requirement at 2.5%. This is lower than JPMorgan's previous SCB of 3.3%. Post-clearing the 2025 stress test, the company announced enhanced capital plans. JPMorgan intends to hike its quarterly dividend by 7.1% to $1.50 per share and authorized a share repurchase program worth $50 billion, which became effective as of July 1. Further, under CCAR, this year, Goldman 's GS SCB set by the central bank is lower than the previous year. The company's SCB will be 3.4% from Oct. 1, 2025, through Sept. 30, 2026. At present, Goldman's SCB is 6.1%. Like JPM, Goldman cleared this year's stress test and announced a raise in its quarterly dividend. The company plans to increase its dividend by 33.3% to $4 per share. Capital One's Price Performance and Zacks Rank This year, shares of Capital One have gained 23.8%, outperforming the industry 's rally of 21.9%. COF currently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Goldman Sachs Group, Inc. (GS): Free Stock Analysis Report JPMorgan Chase & Co. (JPM): Free Stock Analysis Report Capital One Financial Corporation (COF): Free Stock Analysis Report
