State Street (NYSE:STT) on Friday said it plans to increase its per share common stock dividend by 10% to $0.76 in the third quarter of 2024.
The company also announced that it had completed the Federal Reserve’s 2024 Comprehensive Capital Analysis and Review stress test process.
State Street’s calculated Stress Capital Buffer (SCB) under this year’s supervisory stress test was well below the 2.5% minimum, preliminarily resulting in a continued SCB at that floor, which maintains its common equity tier 1 (CET1) ratio requirement at 8%.
The Federal Reserve will release the firm’s final SCB requirement by August 31, which will become effective on October 1, and remain in effect through September 30, 2025.
“We are pleased with the outcome of the 2024 CCAR process, as it once again confirms the financial strength and resiliency of State Street under severely adverse economic conditions,” said Chairman and Chief Executive Officer Ron O’Hanley.
State Street’s Board of Directors will consider the common stock dividend at a regularly scheduled board meeting in the third quarter of 2024, it added.