Shares Trading up at $18.38 (KEY) KeyCorp Announces CCAR Capital Plan…

Morgan Stanley was up 2.3 per cent, Citigroup Inc 3.3 per cent, Bank of America Corp 2.9 per cent, JPMorgan Chase & Co 2.4 per cent, Wells Fargo & Co 3.3 per cent and Goldman Sachs Group Inc 2.4 per cent.

"For some time, we have retained a significant amount of capital in excess of what is needed to prudently operate and invest in the firm".

"We continue to like large bank stocks, even though they have recovered recently, due to potential for strong capital return, rising dividends and benefit from regulatory reforms even over the next couple of years", Vivek Juneja, an analyst at JPMorgan, said in a note Thursday.

An increase in the quarterly common share dividend from $0.095 per share up to $0.105 per share. Repurchase of common shares will be pursuant to the share repurchase program previously authorized by the Company's board of directors on September 26, 2016.

Despite gains for the banks, the main United States share indexes were all lower shortly after trading began. Known as CCAR, in the past it has been the qualitative portion of the test that trips up at least one bank a year.

BB&T also would consider spending up to $1.88 billion on share repurchases, beginning in the third quarter.

Shares in Rite Aid plunged 25% on the news.

UBS analyst Saul Martinez said the results were good news for most of the banks and "highlight that capital optimization will be used aggressively as a lever to improve returns on equity, especially in an environment of limited balance sheet growth".

The U.S. Commerce Department's final estimate of first-quarter GDP is expected to show the economy growing at a 1.2 percent pace.

"This is the big payoff after seven years of pushing the industry to get to a place where capital planning is well ingrained", said Mr David Wright, managing director at Deloitte's advisory business.

The Fed's annual CCAR evaluates the capital planning processes and capital adequacy of the largest banks, including their proposed capital actions such as dividend payments, share buybacks and issuances.

Neil Wilson at ETX Capital said: "Banks are also profiting from a shift in central bank language that suggests the decade-long pursuit of easy money policies could be ending".

As for scandal-plagued Wells Fargo, Sandler O'Neill's principal Jeffery J. Harte said there's a "fairly high likelihood" the Fed will object to the firm's request for higher capital return.

They are expected to pay out to shareholders almost 100 percent of their net revenue over the next four quarters, compared with 65 percent in the same period previous year. Warren Buffett indicated earlier this year that 11 cents would be enough to entice his investment firm, Berkshire Hathaway, to switch its preferred shares, which yield a fixed sum, into common stock.

Capital One Financial was the only bank asked by the Fed to address weaknesses found in its capital plan, which it must do within the next six months.

The Fed's most extreme hypothetical scenario in this year's tests envisions the US economy falling into a deep recession causing the stock market to plunge about 40 percent.


Popular
  • Ready for some fireworks? Celtics looking to acquire Hayward and George

    Ready for some fireworks? Celtics looking to acquire Hayward and George

    But what Boston can offer the Pacers is young players paired with future draft picks which is something IN desperately needs. But, after telling management that he would be heading elsewhere in 2018, George has been on the trading block ever since.

    Facebook surpasses 2 billion users

    There are 7.5 billion living, breathing humans on planet Earth, and now one-third of them are active Facebook users. The billionaire said he plans to use Facebook to connect 1 billion users to different communities.
    Germany: Merkel's challenger sees quick vote on gay marriage

    Germany: Merkel's challenger sees quick vote on gay marriage

    He said recognizing same-sex marriage would bring Germany in line with its peers, advancing its leadership role in Europe. Asked a similar question four years ago, Dr Merkel said she had "huge difficulties" with the issue.
  • Five GOP senators now oppose health bill-enough to sink it

    McCaskill met with Kansas City healthcare leaders Saturday to discuss how the passing of the bill would affect Missourians. Then he criticized two prominent Democratic senators.
    After Public Outcry, Orlando, Florida Moves Confederate Statue

    After Public Outcry, Orlando, Florida Moves Confederate Statue

    Hillsborough County commissioners have voted to keep a Confederate statue outside the Hillsborough County courthouse. A time capsule the size of a cash box was found inside, something cemetery sexton Don Price expected to find.

    The CytRx Corporation (CYTR) Earns Daily News Impact Score of 0.06

    Another key indicator that can help investors determine if a stock might be a quality investment is the Return on Equity or ROE. CytRx Corporation (CYTR ) 52 week low value is at $0.36 and its current distance from 52 week low value is 85.54%.
  • Liu Xiaobo's cancer beyond treatment, wife says

    Liu Xiaobo's cancer beyond treatment, wife says

    Following the award, Mrs Liu was placed under house arrest , although she was never charged with a crime. During the Nobel Peace Prize ceremony in Oslo , Liu was represented by an empty chair .

    José Mourinho accused of €3.3m tax fraud in Spain

    Mourinho was accused by a state prosecutor of defrauding Spain's Tax Office of $3.7 million. The prosecutor said Ronaldo used shell company in the Virgin Islands to cheat on his taxes.
    Ronaldo heads Portugal to 1-0 win over Russia at Confed Cup

    Ronaldo heads Portugal to 1-0 win over Russia at Confed Cup

    Well, New Zealand is a Powerful Team, As they Got 3 Confident GOAL Keepers at FIFA Federation Cup 2017 . The transportation is free for football fans that have both a FAN ID and a ticket to the game.
  • Trump and Irish PM talk migration, Brexit in phone call

    Trump and Irish PM talk migration, Brexit in phone call

    Donald Trump and Irish premier Leo Varadkar say they are both looking forward to meeting in person next March in Washington . Varadkar raised the case of the undocumented Irish in the US and there was a discussion on climate change and trade.
    Trudeau to march but uniformed police won't be at Pride parade

    Trudeau to march but uniformed police won't be at Pride parade

    While there, Trudeau made sure to wish the crowd a happy " Pride Mubarak ", referring to Sunday's end-of-Ramadan celebrations. He, however, said that he has been a regular attendee of the festivity even before he was elected for the highest post.
    Southwest celebrates first day of summer with heat wave

    Southwest celebrates first day of summer with heat wave

    Further west, Death Valley, Calif., temperatures are predicted to be a suffocating 126 degrees for the second consecutive day. The study of almost 2,000 deadly heat waves worldwide since 1980 was published Monday in the journal Nature Climate Change.

CONNECT