The six biggest U.S. banks distributed a record amount of capital to shareholders in 2025. These lenders, including Bank of America, collectively paid out over $140 billion in dividends and share buybacks. This total surpassed the previous record set in 2019.
The record returns reflect the banking sector's strong profitability and growing executive confidence in increasing stock repurchase programs.
Surging profits throughout 2025 served as a primary driver for the capital distributions. This was compounded by a loosening of capital regulations.
In June, the Federal Reserve reduced capital requirements for major holding companies such as Bank of America. This regulatory change, coupled with strong performance in annual stress tests, encouraged lenders to significantly increase distributions to investors.