Banks capital-return plans on deck after market close

Capital Return Plans - Largest banks are expected to announce changes to dividend and buyback plans following the Fed's stress test [1] - Announcements are expected around 4:30 p m Eastern [3] Stress Test Impact - The Fed asked the 22 banks to wait 48 business hours after the results to share their dividend and buyback changes [1] - The amount of capital freed up is expected to be significant due to the relative ease of this year's exam [2] - JP Morgan estimates all 22 banks will see an increase in excess capital, excluding those already at the minimum [3] Bank Performance & Estimates - Bank stocks gained 9% in June, nearly double the S&P, driven by deregulatory sentiment [2] - Wells Fargo is estimated to see the largest increase in excess capital of $14 billion, representing 5% of its market cap [3] - BFA is expected to see an increase of around $9 billion [3] - Goldman Sachs is expected to see an increase of around $7 billion [3]