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U.S. Banks Could Boost Payouts by $30 Billion After Stress Tests

  • Biggest lenders expected to return 96% of profits to investors
  • Foreign banks being tested for the first time may fail

Harsher Federal Reserve stress tests this year won’t stop U.S. banks from increasing their payouts to shareholders.

As the annual review gets under way this week, the 25 largest lenders are gearing up to announce dividends and buybacks totaling roughly $30 billion more than last year, representing a 25 percent increase, according to analysts’ estimates compiled by Bloomberg.