As Citigroup clears the 2025 Fed stress test with a 10.4% CET1 ratio, will it pave the way for buybacks, dividend hikes and leaner operations?

Wall Street's biggest banks rose in morning trading on Monday after sailing through the U.S. Federal Reserve's annual health check, setting the stage for billions in stock buybacks and dividends.

Shares of major banks, including JPMorgan Chase, Goldman Sachs, and Wells Fargo, advanced after the Federal Reserve said those institutions could easily survive a recession.

BofA analyst notes AXP and COF passed Fed's 2025 stress test, sees positive for COF's capital returns. Buy ratings maintained for both.

Passing the stress test also gives banks the green light to proceed with shareholder payouts, including dividends and buybacks.

US Banks: Stress Test Results Look Favorable, With Goldman and Wells Fargo Performing Particularly Well The shares of the 22 tested institutions sold slightly higher in after-hours trading.

The Federal Reserve released its annual stress test results on Friday, June 27. With significantly stronger results compared with a year ago, the shares of the 22 tested institutions traded ...

Banking Wells Fargo clears another Fed hurdle as banks pass stress tests The U.S.’s largest banks remained ‘resilient’ after absorbing $550 billion in losses in a simulated economic shock ...

The annual stress test is designed to examine whether big banks could survive a hypothetical downturn without government assistance.

All 22 banks tested above the minimum common equity tier 1 (CET1) capital requirement during a hypothetical recession, the U.S. central bank said Friday.