Morgan Stanley has said it will double its dividend and increase the size of its share repurchase program to $ 12 billion after the U.S. Federal Reserve loosened restrictions on payments last week. shareholders from and large banks.
The bank raises its quarterly communal dividend to 70 cents per share from 35 cents and will repurchase up to $ 2 billion over its own shares over the next 12 months, having previously engaged in a repurchase program of up to 10 cents. billion dollars.
“The board of directors approved a 100 percent increase in our dividend and an increase in our share repurchase program to $ 12 billion,” said James Morgan, executive director, adding that the bank had “accumulated a significant capital surplus in recent years and now has one of the largest capital buffers in the industry ”.
Shares in Morgan Stanley gained 3 percent in trading after hours in New York.
Morgan Stanley is the first in a series of large U.S. banks to explain how much money they plan to return to shareholders after Thursday’s release of Fed results “Stress test”. The central bank concluded that the 23 banks included in the exercise could suffer nearly $ 500 billion in combined losses and even comfortably meet capital requirements.
This is a developing story. More to follow.