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.
About Citi
Citi is a preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in its home market of the United States. Citi does business in more than 180 countries and jurisdictions, providing corporations, governments, investors, institutions and individuals with a broad range of financial products and services.
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Certain statements in this release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. These statements are not guarantees of future results or occurrences. Citi’s final Stress Capital Buffer requirement and actual capital levels and capital actions (including common stock dividends) may differ materially from those included in these statements due to a variety of factors. These factors include, among others: macroeconomic, geopolitical and other challenges and uncertainties, including those related to economic growth, inflation and interest rates; the potential outcomes of the extensive legal and regulatory proceedings, examinations, investigations, consent orders and related compliance efforts and other inquiries to which Citi is or may be subject; ongoing regulatory and legislative uncertainties and changes, including changes in regulatory capital rules, requirements or interpretations; and the precautionary statements included in this release. These factors also consist of those contained in Citi's other filings with the U.S. Securities and Exchange Commission, including without limitation the "Risk Factors" section of Citi's 2023 Form 10-K. Any forward-looking statements made by or on behalf of Citi speak only as to the date they are made, and Citi does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.
Contacts:
Media: Danielle Romero Apsilos (212) 816-2264
Investors: Jennifer Landis (212) 559-2718