Wells Fargo shares experienced a surge on Tuesday following the bank’s announcement of a $30 billion stock buyback.

In addition, the company’s board of directors has approved an increase in dividends from 30 cents to 35 cents per share. Shareholders of record on August 4 will receive the increased dividend payment on September 1.

After the news, Wells Fargo’s stock rose over 3% in extended trading on Tuesday.

This positive development comes after the bank exceeded expectations for second-quarter earnings and revenue, driven by a 29% rise in net interest income. The Federal Reserve’s series of interest rate hikes in the past year has benefited major financial institutions, as borrowers face higher interest costs.

The central bank is anticipated to raise rates again on Wednesday as part of its efforts to control rising inflation.

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