Summary
Citigroup Inc. (Citi) announced a key update regarding its regulatory capital requirements and shareholder returns. Effective October 1, 2023, Citi's indicative Stress Capital Buffer (SCB) requirement will increase from 4.0% to 4.3%, and its preliminary Standardized Common Equity Tier 1 (CET1) capital ratio regulatory requirement will rise from 12.0% to 12.3%. This increase, however, should be viewed in the context of Citi's strong capital position, as its CET1 ratio stood at 13.44% as of March 31, 2023. In addition to regulatory matters, Citi's Board of Directors has approved an increase in the quarterly common stock dividend. Beginning in the third quarter of 2023, the dividend will rise from $0.51 to $0.53 per share. This dividend increase signals management's confidence in the company's financial health and its commitment to returning capital to shareholders.
Key Highlights
- 1Indicative Stress Capital Buffer (SCB) requirement increases to 4.3% from 4.0%, effective October 1, 2023.
- 2Preliminary Standardized CET1 capital ratio regulatory requirement increases to 12.3% from 12.0%, effective October 1, 2023.
- 3Citigroup's CET1 capital ratio was a strong 13.44% as of March 31, 2023, well above the new preliminary requirement.
- 4The Federal Reserve will provide the final SCB requirement by August 31, 2023.
- 5Quarterly common stock dividend is increased to $0.53 per share from $0.51, effective for the third quarter of 2023.
- 6Dividend increase reflects management confidence and commitment to capital return.
- 7The company includes forward-looking statements with risk factors outlined in its SEC filings.