06:39 AM EDT, 07/01/2024 (MT Newswires) -- U.S. Bancorp ( USB ) said Friday it plans to increase in Q4 its quarterly dividend to $0.50 per share, from $0.49 previously, following the results of the Federal Reserve's 2024 Dodd-Frank Act Stress Test.

The company said it expects a preliminary stress capital buffer requirement of 3.1% for the period beginning Oct. 1 through Sept. 30, 2025 based on the stress test.

The Federal Reserve is expected to finalize the SCB for all firms by the end of August, according to U.S. Bancorp ( USB ).

Given the preliminary SCB, Basel III rules would require the company to maintain a common equity tier 1 ratio of at least 7.6% during the period, U.S. Bancorp ( USB ) said.

In a report released last week, the Federal Reserve projected U.S. Bancorp ( USB ) to reach a minimum CET1 ratio of 7.5% under a severely adverse stress test scenario for Q1 2024 through Q1 2026. The required minimum is 4.5%.

U.S. Bancorp ( USB ) said it estimates its CET1 capital to risk-weighted assets ratio to be 10% as of March 31 this year.