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BofA, unlike other major U.S. banks, had held back a decision on the dividend last week. Rivals JPMorgan Chase (NYSE:JPM), Citigroup (NYSE:C), Wells Fargo (NYSE:WFC), Goldman Sachs (NYSE:GS) and Morgan Stanley (NYSE:MS) hiked their third-quarter dividends on Friday after sailing through the Federal Reserve’s stress test.
BofA had cited a dialogue with the Fed to understand differing results between the central bank’s stress test and the companies’ own under the Dodd-Frank Act.
BofA, the second-biggest U.S. bank, said on Wednesday the talks are ongoing.
The Fed’s annual test showed major lenders, including BofA, have enough capital to weather a severe economic slump, paving the way for them to buy back shares and issue dividends.
Last year, BofA raised its dividend to 22 cents a share, the highest level since the 32 cents paid in 2008 and up from 21 cents in 2021.
