Largest US banks spend a record $33bn on share buybacks

The story in one line: The six biggest US banks spent a record $33 bn in Q1 2026 buying back their own shares — a direct result of higher profits plus Trump-era rule loosening that lets them hold less “safety cash” and return more to shareholders.

Key numbers

• JPMorgan: $8.33 bn (new record, just above its $8.32 bn record from 6 months earlier).
• Bank of America: $7.2 bn (4-year high).
• Citi: $6.3 bn (record Q1 in at least 20 years).
• Goldman Sachs: $5 bn (record).
• Wells Fargo: $4 bn. Morgan Stanley: $1.75 bn.
• Actual buybacks came in 30–50% above analyst forecasts.
• The US Federal Reserve is planning to cut capital requirements for big banks by almost 5%.
• JPMorgan CEO Jamie Dimon says the bank sits on ~$40 bn of excess capital.

Why it matters (jargon, explained)

• A share buyback is when a company uses its cash to buy its own shares in the market. This shrinks the share count, so each remaining share owns a slightly bigger slice of the company — it’s a way of returning money to shareholders (like a dividend, but tax-advantaged).
• Capital requirements are a minimum safety cushion regulators force banks to keep, so they don’t collapse in a crisis. Lower requirements = more money freed up for loans, trading and buybacks — but a thinner buffer if something goes wrong.
• Goldman’s equity-to-risk-weighted-assets ratio (basically, its safety cushion) fell to the lowest since 2020.

Takeaway

Deregulation + strong trading profits from the Iran-war-driven market volatility = the biggest shareholder payout since the 2008 crisis. Investors are happy; the cushion protecting depositors is shrinking.

Source: Financial Times, 15 April 2026 — Joshua Franklin and Akila Quinio.