In a move to boost capital return to shareholders, JPMorgan Chase and Morgan Stanley have announced an increase in both dividend payouts and share repurchases. Their competitors, Citigroup and Bank of America, made more modest announcements in comparison.

JPMorgan Chase, the largest U.S. bank by assets, revealed that it would raise its quarterly dividend by 8.7% to $1.25 per share. Additionally, the bank authorized a new $30 billion share repurchase program. This marks the second dividend increase for JPMorgan this year.

Morgan Stanley, a dominant player in wealth management, declared an 8.8% increase in its dividend, amounting to 92.5 cents per share. The bank also authorized a $20 billion share repurchase plan.

Citigroup, on the other hand, announced a 5.7% rise in its dividend to 56 cents per share. The bank also stated that it would continue to assess share repurchases on a quarterly basis.

Bank of America disclosed an 8% increase in its dividend to 26 cents per share. However, the bank's release did not mention any plans for share repurchases.

These capital return plans come after the banks successfully passed the annual stress test administered by the Federal Reserve earlier this week. In the stress test, all 31 participating banks demonstrated their resilience in withstanding a severe hypothetical recession.

While JPMorgan acknowledged the possibility of higher losses than initially found by the Fed, the bank reassured shareholders that it would not affect their capital-return plan. JPMorgan CEO Jamie Dimon emphasized the strength of the company, stating that it allows them to invest in building their businesses, pay sustainable dividends, and return any remaining excess capital to shareholders as they see fit.

Overall, the increase in dividends and share repurchase plans by these major U.S. banks exemplifies their commitment to maximizing shareholder value and their confidence in their financial resilience.

(article word count: 293