America’s largest banks distributed a record amount of capital to shareholders in 2025, driven by surging profits and a loosening of capital regulations. The six biggest US banks collectively paid out over $US140 billion in dividends and share buybacks, exceeding the previous record set in 2019 during Donald Trump’s first presidential term. This surge reflects increased confidence among bank executives to ramp up stock repurchase programs.
JPMorgan Chase & Co led the charge, repurchasing more than $US30 billion of its own stock. This figure represents a high for Wall Street banks and is more than triple the amount bought back two years prior. The Federal Reserve moved in June to reduce holding companies’ capital requirement under the enhanced supplementary leverage ratio, a rule that applies to big banks such as JPMorgan, Bank of America and Goldman Sachs.
Easing capital requirements, coupled with strong performance in the central bank’s annual stress test, prompted many lenders to capitalise in the third quarter. Citigroup, for example, increased its buybacks fivefold compared to the same period a year earlier. Banks expect this momentum to continue into the current year.
Goldman Sachs, led by chief executive officer David Solomon, intends to maintain a dynamic approach to stock buybacks. Goldman Sachs is a leading global investment banking, securities, and investment management firm. JPMorgan Chase & Co. is a financial services firm providing investment banking and financial services.
