Wells Fargo approves new $30 billion share buyback program

(Reuters) – Wells Fargo said on Tuesday its board had authorized a new share buyback program of up to $30 billion.

The bank’s shares rose 1% in extended trading after earlier jumping almost 4% after the announcement.

Wells Fargo announced the buybacks days after it reported a 57% jump in profit in the second quarter, which was lifted by customer interest payments.

The lender and rival U.S. banking giants raised their third-quarter dividends after sailing through the Federal Reserve’s annual health check, which showed they have enough capital to weather a severe economic downturn.

(Reporting by Noor Zainab Hussain in Bengaluru and Lananh Nguyen in New York; Editing by Arun Koyyur and Chris Reese)