Banks’ Stock Buybacks Jump $10 Billion After Easier Fed Test (1)

Four of the biggest US banks almost doubled their stock buybacks in the first full quarter following the Federal Reserve’s annual stress test, which the lenders all comfortably passed in June.

The four firms that reported third-quarter results on Tuesday repurchased more than $21 billion in the period, up from $11.5 billion a year earlier. The stock dividends they paid out climbed by roughly 10% from the same period a year ago.

So far, Citigroup Inc. had the biggest jump in share repurchasing, quintupling its buybacks from last year’s third quarter. The New York-based bank has long signaled its ...