2023-06-30 17:18:58 ET
The Bank of New York Mellon ( NYSE: BK ) said Friday it's planning to hike its dividend by 14% to $0.42 a share, starting as early as Q3.
As a result of the Federal Reserve's stress test, BNY Mellon's ( BK ) preliminary stress capital buffer requirement will stay at 2.5%, equivalent to the regulatory floor. This SCB is expected to be effective from Oct. 1, 2023, to Sept. 30, 2024.
"The results of the Federal Reserve's 2023 bank stress test once again highlight BNY Mellon's capacity to withstand extreme stress scenarios," said President and CEO Robin Vince.
The company said it continues to be authorized to buy back its shares under an existing repurchase program approved by the board, as announced in January.
More on the Fed Stress Tests:
- Capital One, Citizens Financial, Truist screen poorly in 2023 Fed stress test
- All 23 banks pass Federal Reserve's stress test on capital levels
- JPMorgan Chase plans 5% dividend increase, continues to buy back shares
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BNY Mellon plans 14% dividend increase as stress capital buffer stays at floor