NEW YORK Bank of America (BofA) said on Wednesday it planned to increase its quarterly common stock dividend to 24 cents per share from 22 cents per share beginning in the third quarter of 2023.

BofA, unlike other major U.S. banks, had held back a decision on the dividend last week. Rivals JPMorgan Chase, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley hiked their third-quarter dividends on Friday after sailing through the Federal Reserve's stress test.

BofA had cited a dialogue with the Fed to understand differing results between the central bank's stress test and the companies' own under the Dodd-Frank Act.

BofA, the second-biggest U.S. bank, said on Wednesday the talks are ongoing.

The Fed's annual test showed major lenders, including BofA, have enough capital to weather a severe economic slump, paving the way for them to buy back shares and issue dividends.

Last year, BofA raised its dividend to 22 cents a share, the highest level since the 32 cents paid in 2008 and up from 21 cents in 2021.

(Reporting by Jaiveer Singh Shekhawat in Bengaluru and Saeed Azhar in New York; Editing by Shailesh Kuber and Jamie Freed)