Banks, lenders and other financial companies rose as the Federal Reserve said large banks passed the latest "stress tests" with flying colors, clearing the way for dividend increases. Shares of the largest three U.S. bank by assets, JPMorgan Chase, Bank of America and Citigroup rose by about 2%. J.P. Morgan was approved for a 12% increase to its dividend and a $19.4 billion buyback program. BofA said it would increase its dividend by 60% to 12 cents a share per quarter and also received Fed approval to boost its share-buyback plan to up to $12.9 billion. Analysts at brokerage Nomura Securities said Citi was the "clear standout" in stress-test results as it got approval for a dividend payout higher than analysts had anticipated.
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(END) Dow Jones Newswires
June 29, 2017 17:08 ET (21:08 GMT)