Summary
Citigroup Inc. (Citi) announced a slight reduction in its indicative Stress Capital Buffer (SCB) requirement and its preliminary Standardized Common Equity Tier 1 (CET1) capital ratio regulatory requirement, both effective October 1, 2024. The indicative SCB requirement will decrease by 20 basis points to 4.1%, and the preliminary Standardized CET1 capital ratio regulatory requirement will also decrease by 20 basis points to 12.1%. These reductions are positive signals for capital management and could imply a slightly improved capacity for capital deployment. As of March 31, 2024, Citi's Standardized CET1 capital ratio stood at a robust 13.5%, well above the new preliminary requirement. In conjunction with these regulatory adjustments, Citi also announced its intention to increase its quarterly common stock dividend from $0.53 to $0.56 per share, beginning in the third quarter of 2024, subject to Board approval. This dividend increase, coupled with the reduced capital buffer requirements, suggests management's confidence in the company's capital position and its ability to return value to shareholders.
Key Highlights
- 1Indicative Stress Capital Buffer (SCB) requirement reduced by 20 bps to 4.1%, effective October 1, 2024.
- 2Preliminary Standardized Common Equity Tier 1 (CET1) capital ratio regulatory requirement reduced by 20 bps to 12.1%, effective October 1, 2024.
- 3Citi's Standardized CET1 capital ratio was 13.5% as of March 31, 2024, exceeding the new preliminary regulatory requirement.
- 4Planned increase in quarterly common stock dividend from $0.53 to $0.56 per share, starting Q3 2024 (subject to Board approval).
- 5Final SCB requirement to be provided by the Federal Reserve by August 31, 2024.