Dec 4 State Street Corp next month may
ask the Federal Reserve to approve a more aggressive plan for
returning capital to shareholders, such as a larger dividend,
the bank's chairman said on Tuesday.
"We're thinking of perhaps a more aggressive ask," State
Street Chairman and Chief Executive Jay Hooley said during a
presentation at the Goldman Sachs Financial Services conference.
On the table for discussion is a larger dividend, Hooley
said. Returning capital to shareholders has been a priority for
"We're looking at ... what is an appropriate level of stock
buyback and share dividend," he said.
In the first 10 months of this year State Street repurchased
nearly 27 million of its shares at a cost of $1.2 billion. That
left $649 million remaining under a stock repurchase plan
announced in March.
The Boston-based custody bank currently pays a quarterly
dividend of 24 cents per share, which translates to an annual
yield of about 2.15 percent at Tuesday's share price of $44.66.
State Street's deadline for submitting its capital plan to
the Fed is Jan. 7. Hooley said the bank's capital position
supports the continued return of capital to shareholders.