Strong Capital Numbers Make Stress Test Results Low-Impact

With capital numbers across the U.S. banks at strong levels, this year’s DFAST and CCAR results won’t drive stock performance, believe Citi analysts.

Keith Horowitz and team at Citi in their recent research report titled “2014 CCAR Playbook” highlighted their expectations for this year’s results for both share repurchases and dividends.

DFAST and CCAR results in March

Taking their cue from last year’s release dates, the Citi analysts anticipate the Dodd Frank Stress Test (DFAST) results will be disclosed around March 7^th, 2014. DFAST highlights projections by the Fed of the bank balance sheets / income statements under the stress scenarios.

The analysts expect the Comprehensive Capital Analysis and Review (CCAR) results would be unveiled around...