An email has been sent to your address with instructions for changing your password.
There is no user registered with this email.
Sign Up
To create a free account, please fill out the form below.
Thank you for signing up!
A confirmation email has been sent to your email address. Please check your email and follow the instructions in the message to complete the registration process. If you do not receive the email, please check your spam folder or contact us for assistance.
Welcome to our platform!
Oops!
Something went wrong while trying to create your new account. Please try again and if the problem persist, Email Us to receive support.
Wells Fargo Issues Statement Regarding the Federal Reserve’s Stress Test Results
Rhea-AI Impact
(Low)
Rhea-AI Sentiment
(Neutral)
Tags
Rhea-AI Summary
Wells Fargo (NYSE: WFC) has completed the 2022 Comprehensive Capital Analysis and Review (CCAR) stress test, estimating its stress capital buffer (SCB) at 3.2%. The Federal Reserve Board will publish the final SCB by August 31, 2022. The company plans to increase its common stock dividend from $0.25 to $0.30 per share, subject to Board approval. Additionally, there is significant capacity for common stock repurchases from Q3 2022 through Q2 2023, contingent on market conditions and risk factors. CEO Charlie Scharf confirmed the company's strong capital position.
Positive
Increase in common stock dividend to $0.30 per share from $0.25 per share.
Significant capacity for common stock repurchases over the next four quarters.
Strong capital position confirmed by CCAR stress test results.
Negative
None.
SAN FRANCISCO--(BUSINESS WIRE)--
Wells Fargo & Company (NYSE: WFC) today announced that it has completed the 2022 Comprehensive Capital Analysis and Review (CCAR) stress test process. The Company expects its stress capital buffer (SCB) to be 3.2%, which represents a percentage amount of incremental capital the Company must hold above its minimum regulatory capital requirements. The Federal Reserve Board (FRB) has indicated that it will publish the Company’s final SCB by August 31, 2022.
Wells Fargo branch (Photo: Wells Fargo)
The Company expects to increase its third quarter 2022 common stock dividend to $0.30 per share from $0.25 per share, subject to approval by the Company’s Board of Directors at its regularly scheduled meeting in July. Additionally, over the four-quarter period beginning third quarter 2022 through second quarter 2023, the Company has significant capacity to execute on common stock repurchases, which will be routinely assessed as part of the Company’s internal capital adequacy framework that considers current market conditions and other risk factors.
“Wells Fargo remains in a strong capital position, as confirmed by this year’s CCAR stress test,” said CEO Charlie Scharf. “We are well-positioned to support our customers and communities, while also continuing to return excess capital to shareholders through dividends and share repurchases.”
About Wells Fargo Wells Fargo & Company (NYSE: WFC) is a leading financial services company that has approximately $1.9 trillion in assets, proudly serves one in three U.S. households and more than 10% of small businesses in the U.S., and is a leading middle market banking provider in the U.S. We provide a diversified set of banking, investment, and mortgage products and services, as well as consumer and commercial finance, through our four reportable operating segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth & Investment Management. Wells Fargo ranked No. 37 on Fortune’s 2021 rankings of America’s largest corporations. In the communities we serve, the company focuses its social impact on building a sustainable, inclusive future for all by supporting housing affordability, small business growth, financial health, and a low-carbon economy. News, insights, and perspectives from Wells Fargo are also available at Wells Fargo Stories.
Cautionary Statement about Forward-Looking Statements
This news release contains forward-looking statements about our future regulatory capital levels and possible future capital actions, including common stock dividends and common share repurchases. Forward-looking statements speak only as of the date made, and we do not undertake to update them. Actual capital levels and capital actions may vary materially from expectations due to a number of factors, including those described in our reports filed with the Securities and Exchange Commission and available at www.sec.gov. The amount and timing of any future common stock dividends or repurchases will depend on the earnings, cash requirements and financial condition of the Company, market conditions, capital requirements (including under Basel capital standards), common stock issuance requirements, applicable law and regulations (including federal securities laws and federal banking regulations), and other factors deemed relevant by the Company’s Board of Directors, and may be subject to regulatory approval or conditions.
