3 Bank Stocks With Buyback Plans of at Least $30 Billion Worth a Look

Source Motley_fool

Key Points

  • JPMorgan’s board approved a $50 billion share repurchase program, but the company has reduced its share count by only about 2.4% year over year.

  • Bank of America has used about $29 billion of its $40 billion buyback authorization, cutting its share count by 5.5% this past year.

  • Citigroup trimmed its share count by 7.5% year over year, despite having the smallest buyback program of the three.

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JPMorgan Chase (NYSE: JPM), Bank of America (NYSE: BAC), and Citigroup (NYSE: C) are putting billions behind their share buyback programs, with each bank authorizing at least $30 billion in repurchases.

All three banks released third-quarter results in mid-October, offering updates on their finances and their future plans. Which ones have actually followed through on these share repurchase agreements, shrinking their share count and giving investors more bang for their investment buck?

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JPMorgan has the biggest buyback but the slowest pace

In June 2026, JPMorgan's board authorized a new $50 billion common stock repurchase program, effective July 1. And during the third quarter, JPMorgan repurchased around $1 billion in common stock but recorded only $664 million in net repurchases. In other words, that gross amount used only about 2% of the new authorization.

And not surprisingly, the impact on the share count was modest. The company ended September with 2.656 billion common shares outstanding, compared with 2.722 billion a year earlier. That means its share count declined just 2.4% year over year.

There's a reason for the slower pace.

Management has emphasized that repurchases must compete with other uses of capital, including investments in the business, lending opportunities, and the maintenance of a strong balance sheet. The bank also faces risks around weaker credit quality and investment banking activity.

On top of that, at a forward price-to-earnings (P/E) ratio of 13 times, its valuation also leaves less room for disappointment than its peers'.

A faster $40 billion buyback is shrinking Bank of America's share count

Bank of America has had a $40 billion common stock repurchase authorization in place since Aug. 1, 2025. By June 30, 2026, the bank had around $17 billion remaining under the authorization after repurchasing $13.2 billion in the first half of the year. Then, during the third quarter, it repurchased another $6 billion of common stock.

That brings the program's total repurchases to $29 billion, leaving $11 billion available. Put differently, it has used roughly 73% of the authorization in about 14 months and at its current pace, that remaining amount could be used relatively quickly.

The impact has already been meaningful. Bank of America ended September with 6.923 billion common shares outstanding, down 5.5% year over year from 7.329 billion.

That said, the bank faces risks around interest rates and regulatory issues. But at a forward P/E of 9.8 times, its valuation could look reasonable, especially given its aggressive buybacks.

Citi's smallest buyback is shrinking its share count fastest

Citigroup began a $30 billion multi-year common stock repurchase program in the second quarter of 2026. In that quarter alone, it repurchased $4 billion in common stock, leaving around $26 billion under authorization by June 30. That means Citi used about 13% of its authorization in a single quarter.

Then, in the third quarter, Citi reported returning $4.1 billion to common shareholders through a combination of common stock repurchases and dividends. As a result, the share count declined notably. The bank ended September with 1.655 billion common shares outstanding, down 7.5% from 1.789 billion a year earlier.

Of course, Citi also faces risks. Its ongoing transformation involves operational and regulatory work, and any setbacks could delay its profitability targets. Plus, its credit card business is under pressure.

And with the stock trading at a forward P/E ratio of just 9.4 times, valuation is less demanding than the other banks.

Which bank stock offers the best buyback opportunity?

Ultimately, the best buyback opportunity comes down to which bank can deliver the most shareholder value. JPMorgan, Bank of America, and Citigroup all have massive buyback programs. Among the three, Citi's share count has declined the most despite having the smallest buyback program.

Bank of America comes in second, while having a larger program. And JPMorgan has the largest buyback program among the three, but is the least eager to spend. At current paces, Bank of America has under two quarters left; the others have longer.

JPMorgan could suit investors looking for the most upside from buybacks, despite its buyback activity being slow. Bank of America could be the balanced pick, pairing aggressive buybacks with a reasonable valuation. At the other end, Citigroup could be the high-risk, high-reward choice, given its transformation.

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JPMorgan Chase is an advertising partner of Motley Fool Money. Citigroup is an advertising partner of Motley Fool Money. Bank of America is an advertising partner of Motley Fool Money. Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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