Andrii Yalanskyi
Wells Fargo (NYSE:WFC), Goldman Sachs (NYSE:GS) and Bank of America (NYSE:BAC) stocks each moved up by more than 1% in Friday after-hours trading after the Federal Reserve released the results of the 2025 Dodd-Frank stress tests.
Goldman Sachs increased 2.8%, Wells Fargo (NYSE:WFC) rose 1.9%, and Bank of America (NYSE:BAC) gained 1.5%.
All 22 banks tested passed the annual stress test that analyzes their books for how they’d weather a hypothetical severe recession. This year’s scenario wasn’t as severe as 2024’s.
In the stress test results, Goldman Sachs’ (NYSE:GS) common equity tier 1 capital ratio fell as low as 12.3%, but ended the test period at 16.3% in the severely adverse scenario, actually higher than its 15.0% CET1 ratio in Q4 2024.
Wells Fargo’s (NYSE:WFC) minimum CET1 ratio was 10.1%, ending ratio was 10.4% and actual Q4 2024 ratio was 11.1%.
Bank of America (NYSE:BAC) saw its CET1 ratio fall as low as 10.2% in the hypothetical recession and ended the test period at 10.7%, compared with its Q4 CET1 capital ratio of 11.9%.