Big Banks Led by JPMorgan Set to Return $80 Billion to Investors

US banking giants are poised to return $80 billion to shareholders after this year’s Federal Reserve stress tests, less than last year’s elevated level that followed a pandemic-driven buyback pause.

JPMorgan Chase & Co. is set to lead the group with $18.9 billion in combined dividends and share buybacks, even as the biggest US lender spends more this year to build out offerings and fend off competition. Bank of America Corp. and Wells Fargo & Co. are expected to return $15.5 billion and $15.3 billion, respectively, according to data compiled by Bloomberg based on estimates provided by analysts at Barclays Plc.

“Because the banks didn’t buy back stock during Covid, the last year was very elevated, so you reduced that excess capital,” Jason Goldberg, an analyst at Barclays, said in an interview. “We’re certainly in a period of increased economic uncertainty, and at the same time we’re actually seeing pretty good loan-growth opportunities.”