2023-06-30 17:49:28 ET
Citi ( NYSE: C ) said Friday that its board has approved a plan to boost the bank's dividend to $0.53 a share in Q3 from the current $0.51 payout, after completing the Federal Reserve's 2023 Comprehensive Capital Analysis and Review stress test process.
As a result of the Fed's stress test, Citi's ( C ) indicative stress capital buffer requirement is 4.3%, up from the current 4.0%, and the company's preliminary common equity tier 1 capital ratio regulatory requirement is now 12.3%, vs. 12.0% currently, effective Oct. 1, 2023.
"While we would have clearly preferred not to see an increase in our stress capital buffer, these results still demonstrate Citi’s financial resilience through all economic environments, including the severely adverse scenario envisioned in the Federal Reserve’s stress test," said Citi CEO Jane Fraser.
As of March 31, 2023, Citi's ( C ) CET1 capital ratio, which includes a 100-basis-point management buffer, stood at 13.44%, surpassing the new regulatory requirement. The Fed will provide the firm with its final SCB requirement by Aug. 31, 2023, and that requirement will become effective on Oct. 1, 2023, and will remain in effect until Sept. 30, 2024.
During the second quarter, the Fraser noted, Citi ( C ) bought back $1B of its common stock.
More on the Fed's Stress Tests:
- All 23 banks pass Federal Reserve's stress test on capital levels
- JPMorgan Chase plans 5% dividend increase, continues to buy back shares
- U.S. Bancorp calculates 2023 stress capital buffer at 2.5%
For further details see:
Citi plans 4% dividend boost for Q3, logs $1B buyback in Q2