Citi announced that it has completed the Federal Reserve’s 2023 Comprehensive Capital Analysis and Review (“CCAR”) stress test process. The Firm’s indicative Stress Capital Buffer (“SCB”) requirement is 4.3%, up from the current 4.0%, and the Firm’s preliminary Standardized Common Equity Tier 1 (CET1) capital ratio regulatory requirement is 12.3%, up from the current 12.0%, effective October 1, 2023.
As of March 31, 2023, Citi’s Standardized CET1 capital ratio, which includes a 100-basis-point management buffer, stood at 13.44%, above the new regulatory requirement. The Federal Reserve will provide the Firm with its final SCB requirement by August 31, 2023, and that requirement will become effective on October 1, 2023, and will remain in effect until September 30, 2024.
Citi’s Board of Directors approved a plan to increase the current quarterly common stock dividend of $0.51 to $0.53 per share for the third quarter of 2023. The Firm’s quarterly common stock dividends are subject to approval by the Board of Directors at the customary times that those dividends are declared.
Jane Fraser, Citi CEO, said: “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. Our robust capital and liquidity position, as well as the diversification of our funding and our business model, allow Citi to continue to be a source of strength for our clients and navigate challenging macro environments securely.
“We repurchased $1 billon of common stock during the second quarter, intend to increase our dividend and we will continue to evaluate capital actions on a quarter-by-quarter basis. We are completely committed to simplifying Citi, improving returns and delivering value to our shareholders,” Ms. Fraser concluded.
