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By Davit Kirakosyan
JPMorgan Chase & Co. (NYSE:JPM) maintained its dividend after it completed the Federal Reserve’s 2022 Comprehensive Capital Analysis and Review (CCAR) stress test process.
In light of higher future capital requirements, the company’s Board of Directors plans to maintain the current quarterly common stock dividend of $1.00 per share for Q3/22.
Jamie Dimon, Chairman and CEO of JPMorgan Chase said: “The Federal Reserve’s 2022 CCAR stress test once again shows that banks are able to be a source of strength for the broader economy while withstanding extreme market shocks. We continue to maintain a fortress balance sheet including robust governance and controls, strong revenue growth and profit margins, and we remain committed to serving our clients and customers. We will continue to use our capital to invest in and grow our market-leading businesses, pay a sustainable dividend, and we will retain capital to fully satisfy our future regulatory requirements.”
The Fed is expected to provide the company with its final Stress Capital Buffer (SCB) requirement by August 31, and that requirement will become effective on October 1 and remain in effect until September 30.
The company’s indicative SCB requirement is 4% (up from the current 3.2%) and the standardized Common Equity Tier 1 capital ratio requirement including regulatory buffers is 12% (up from the current 11.2%).
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