The Federal Reserve did not object to a revised capital plan from Fifth Third Bancorp (FITB) that included a potential divided increase and repurchase of common stock.

The Cincinnati company passed the stress test earlier this year but the Federal Reserve had denied its request to buy back stock and raise the dividend. Fifth Third resubmitted a capital plan in June.

The revised plan included possibly increasing the quarterly dividend from 8 cents to 10 cents in the third quarter and potential share repurchases of up to $600 million through the first quarter of 2013, Fifth Third said Tuesday.

Fifth Third's board approved a plan to repurchase up to 100 million shares, replacing a previous authorization from 2007 under which roughly 14 million shares remained. The company's board will consider the dividend increase at its regular meeting in September.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.