Wells Fargo (WFC) plans to increase dividend by 12.5%

Wells Fargo & Company (NYSE: WFC) today announced that it has completed the 2025 Comprehensive Capital Analysis and Review (CCAR) stress test process. The Federal Reserve Board’s (FRB) calculations resulted in an expected stress capital buffer (SCB) for the Company below the minimum, and the Company therefore expects its SCB to decrease from 3.8% to the minimum of 2.5%, which represents a percentage amount of incremental capital the Company must hold above its minimum regulatory capital requirements. The FRB has indicated that it will publish the Company’s final SCB by August 31, 2025. The FRB has a pending notice of proposed rule making that, if finalized as proposed, would result in the Company’s expected SCB being 2.6%.

The FRB also revised Wells Fargo’s 2024 SCB to 3.7%, down from 3.8%, due to the correction of modest errors in the FRB’s loss projections related to corporate and first lien mortgage loans in the 2024 stress test results.

The Company also announced that it expects to increase its third quarter 2025 common stock dividend by 12.5% to $0.45 per share from $0.40 per share, subject to approval by the Company’s Board of Directors at its regularly scheduled meeting in July. Additionally, the Company has capacity to continue repurchasing common stock, which will be routinely assessed as part of the Company’s internal capital adequacy framework that considers current market conditions, regulatory capital requirements, and other risk factors.

You May Also Be Interested In