Chase Manhattan Corp. announced Tuesday that it would buy back up to $3 billion of its own shares as part of its capital management strategy.
"While seeking to maintain strong capital ratios, we also believe that we must deliver a superior return to shareholders," said Walter V. Shipley, chairman and chief executive officer, in a press release.
Whenever the banking company's Tier 1 capital ratio exceeds a target of 8% to 8.25%, it will use the excess capital to buy back its stock, invest in other business operations, or make acquisitions, said a Chase spokesperson. Chase said its Tier 1 capital at the end of the third quarter was 8.3%.
This is the second stock repurchase program that Chase announced since it was created through the merger of Chemical Banking Corp. and Chase Manhattan Corp. in 1995. Its first program was announced in 1996 and was for $2.5 billion.