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Citigroup said it would hike its dividend and buy back $17.6 billion of stock over the next year after passing the Fed's annual stress test.
J.P. Morgan Chase announced it would raise its quarterly dividend to 80 cents from 56 cents a share, and buy back up to $20.7 billion.
The Federal Reserve gave 34 of the biggest banks the go-ahead to pay dividends and buy back stock after the second part of annual stress tests, it announced on Thursday.
Of the major banks, Wells Fargo, Citigroup, Bank of America and J.P. Morgan Chase received approval for their capital return plans. They were expected to announce those plans individually.
The Federal Reserve objected to Deutsche Bank's proposal, while Goldman Sachs and Morgan Stanley received conditional approval but will only be paying out roughly what they did last year instead of boosting dividends or buybacks.
Last year, J.P. Morgan announced its biggest share buyback since the financial crisis and Citigroup doubled its dividend.
