Big US banks expected to be cautious on shareholder payouts

WASHINGTON, June 24 (Reuters) – Big U.S. lenders are expected to show they have ample capital to weather any renewed turmoil during this week’s Federal Reserve health checks, but will be conservative on investor payouts amid economic and regulatory uncertainties, analysts said.

The central bank on Wednesday will release the results of its annual bank “stress tests” which assess how much cash lenders would need to withstand a severe economic downturn and how much they can return to investors via dividends and share buybacks.