Dividend payouts at US banks hit all-time high in Q3'22

Dividend payouts at U.S. banks in the third quarter touched an all-time high with aggregate distribution reaching $15.00 billion, eclipsing the previous high of $14.79 billion in the first quarter of 2020.

The total was up 3.2% from the second quarter and 9.0% year over year, according to an analysis by S&P Global Market Intelligence.

Meanwhile, the median dividend payout ratio at U.S. banks declined by 3.3 percentage points quarter over quarter to 20.69%, but it was up 1.7 percentage points year over year.

Banks with most dividend payouts in Q3

Among the 20 banks with the highest dividend payouts, Stamford, Conn.-based Webster Financial Corp. had the largest annual jump in dividends paid, rising 95.9% to $74.9 million in the third quarter. Webster Financial and Pearl River, N.Y.-based Sterling Bancorp completed their previously announced merger on Jan. 31.

Buffalo, N.Y.-based M&T Bank Corp. recorded the second-largest jump, with dividends paid increasing by 48.9% to $242.7 million.

Meanwhile, JPMorgan Chase & Co. maintained its top spot as the company with the most dividends paid in the third quarter. The bank paid out $3.41 billion in dividends, an increase of 8.0% year over year, and had a dividend payout ratio of 32.1% during the quarter ended Sept. 30.

Bank of America Corp. was second by a huge margin, paying $2.25 billion in dividends, up 5.1% annually. The banking giant had a dividend payout ratio of 27.2% during the quarter ended Sept. 30.

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Wells Fargo & Co. was third with a dividend payout of $1.36 billion, an annual increase of 29.5%, the highest annual jump in dividends paid among the top five companies in the analysis. Its dividend payout ratio was 35.3%.

Citigroup Inc. was the only company in the Big Four with a decline in dividends paid during the third quarter year over year. The company paid out $1.26 billion in dividends, down by 2.5% from a year ago. Citi's dividend payout ratio was 31.3%.

Truist Financial Corp.'s dividend payout increased 8.2% year over year to $788.0 million, while its dividend payout ratio was 45.2%, rounding off the top five banks.

Banks with YOY decreases

Apart from Citi, Columbus, Ohio-based Huntington Bancshares Inc., Dallas-based Comerica Inc. and Memphis, Tenn.-based First Horizon Corp. had year-over-year declines in their third-quarter dividend payouts.

Huntington Bancshares had the largest year-over-year percentage drop in dividends paid among the top 20, at negative 5.3%, as it paid out $252.0 million.