The six major U.S. banks returned over one trillion U.S. dollars to shareholders in 2024, reaching a new high in three years.

Due to concerns about regulation, some of Wall Street's largest banks have been hoarding capital for years, and now they are providing shareholders with the highest returns in three years in the form of dividends and buybacks. Compiled data shows that the six largest banks in the United States returned over $100 billion to shareholders through dividends and stock buybacks in 2024, the highest level since 2021. This is also the largest proportion of profits paid to investors by these companies since before the COVID-19 pandemic. Executives expect to provide even more returns in 2025. Citigroup (C.US) has been the bank with the lowest buybacks among major U.S. banks, typically investing in risk management and controls, and eventually meeting investors' demands by returning cash to shareholders through a $20 billion buyback plan. Jeremy Barnum, CFO of JPMorgan Chase (JPM.US), stated that the bank has excess capital and does not wish to further increase it. Barnum said in a conference call with analysts, "Given the organic capital generation we are producing, this implies that absent organic deployment or other opportunities in the near term, that more capital return through repurchases under the same conditions is the plan to throttle down the excess growth we're demonstrating at present." Shareholders strongly demand buybacks because it allows each investor to hold a larger stake in the company and increases the value of outstanding shares. Mark Mason, CFO of Citigroup, stated in a conference call with analysts, "Our share repurchases demonstrate our confidence in profitability and earnings momentum and that we recognize our trading price is below book value and where we would like it to be." After facing a roller coaster of regulatory periods, larger buybacks and dividends are back on the negotiation table following record profits for banks in 2021. However, stricter U.S. Federal Reserve stress tests put the brakes on banks in the latter half of 2022, and concerns about stricter capital requirements emerged in 2023. For the largest financial companies in the U.S., the current situation appears more upbeat. The Trump administration may bring relief by reducing or canceling plans that force banks to hold more capital on their books, which should release cash for banks to lend more and provide more funds to shareholders. David Solomon, CEO of Goldman Sachs Group, Inc. (GS.US), stated in a conference call, "Given the change in government and leadership within the Federal Reserve, we expect a different approach. We have to observe, we have to wait." Reportedly, Goldman Sachs Group, Inc. returned a record level of capital to shareholders this year. The rules, known as the "Basel III endgame agreement," aim to comply with regulations set by the Basel Committee, which aims to limit banking risks post the 2008 financial crisis by requiring banks to hold more capital on their balance sheets to mitigate high-risk bets going wrong. Jane Fraser, CEO of Citigroup, stated in her company's conference call, "We have been increasing capital returns over the past few quarters, and I'm pleased to see a more aggressive Basel III proposal firmly ruled out."