Summary
Capital One Financial Corporation (COF) announced on June 27, 2019, that the Federal Reserve's Board of Governors did not object to the company's adjusted capital plan submitted under the Comprehensive Capital Analysis and Review (CCAR) process. This positive outcome from the CCAR review is a significant event for investors, as it provides a clearer path for capital return. The company intends to maintain its quarterly dividend of $0.40 per share, subject to board approval. Furthermore, Capital One's Board of Directors has authorized a substantial share repurchase program of up to $2.2 billion, expected to run from the third quarter of 2019 through the second quarter of 2020. These capital return initiatives are generally viewed favorably by investors as they can enhance shareholder value.
Key Highlights
- 1Federal Reserve's CCAR review completed with no objection to Capital One's adjusted capital plan.
- 2Company expects to maintain its quarterly dividend of $0.40 per share.
- 3Board of Directors authorized a share repurchase program of up to $2.2 billion.
- 4Share repurchase program is scheduled to commence in Q3 2019 and conclude by the end of Q2 2020.
- 5The timing and amount of repurchases are subject to market conditions, growth opportunities, and the company's capital position.
- 6The company also published results of its company-run stress tests performed under the Federal Reserve’s severely adverse scenario.