The Federal Reserve’s board has advised Citi that it has no objection to the planned capital actions requested by the company as part of the 2015 Comprehensive Capital Analysis and Review (CCAR).
Michael Corbat, Citi CEO:
“We are committed to delivering meaningful returns of capital to our shareholders and today’s decision will allow us to begin doing so. We have worked very hard over the last twelve months to further strengthen our capital planning process, with the goal of embedding it into the way we run the firm. We are committed to building on the process that serves the financial system as well as our shareholders. We want Citi to be an indisputably safe and sound institution and will do everything in our power to make that the case, year in and year out.”
The planned capital actions include an increase of Citi’s quarterly common stock dividend to $0.05 per share (subject to quarterly approval by the bank’s Board of Directors), as well as a common stock repurchase program of up to $7.8 billion during the five quarters starting in Q2 2015.
Repurchases by Citi under the common stock repurchase program could be affected through open market purchases, trading plans established to follow U.S. Securities and Exchange Commission rules, or other means, depending on satisfactory market conditions, applicable legal requirements and other factors. The common stock repurchase program does not compel Citi to repurchase any particular amount of common stock and could be suspended at any time at Citi’s discretion.