Citi Announces Stress Capital Buffer Requirement
New York – Citi announced today that it has completed the Federal Reserve Board’s 2024 annual supervisory stress test process. Citi’s indicative Stress Capital Buffer (“SCB”) requirement is 4.1%, down from the current 4.3%, and Citi's preliminary Standardized Common Equity Tier 1 (CET1) capital ratio regulatory requirement is 12.1%, down from the current 12.3%, effective October 1, 2024.
As of March 31, 2024, Citi's Standardized CET1 capital ratio, which includes a 100-basis-point internal management buffer, stood at 13.5%, above the new regulatory requirement. The Federal Reserve Board will provide the Firm with its final SCB requirement by August 31, 2024, and that requirement will become effective on October 1, 2024, and will remain in effect until September 30, 2025.
Citi’s planned capital actions include an increase of Citi's quarterly common stock dividend from $0.53 to $0.56 per share, subject to quarterly approval by Citi's Board of Directors, starting in the third quarter of 2024. Citi will continue to assess share repurchases on a quarter-to-quarter basis.
Jane Fraser, Citi CEO, said: “The results of this year’s stress test again demonstrate Citi’s financial strength and the resilience of our business model. Our robust balance sheet and liquidity position are designed to serve our clients through every environment, particularly times of stress and uncertainty. We were also pleased to see our Stress Capital Buffer decrease in light of our ongoing efforts to simplify our firm. We are committed to remaining a safe and sound institution while we invest in our Transformation and improve the returns of our businesses.”
A Current Report on Form 8-K regarding this announcement can be found here.
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