Citigroup keeps dividend unchanged after stress buffer increased

Jun. 27, 2022 5:40 PM ETCitigroup Inc. (C)By: Liz Kiesche, SA News Editor34 Comments

Citibank sign and logo in Mongkok, Hong Kong

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  • Citigroup (NYSE:C) plans to keep its current common dividend unchanged at $0.51 per share after the Federal Reserve required that it holds on to more capital in case of a severe economic shock, it disclosed Monday.
  • The Fed notified Citi (C) that it expects the bank's stress capital buffer to increase to 4.0% for the four-quarter window of Q4 2022 to Q3 2023 from 3.0%. That will require Citi (C) to maintain an 11.5% effective minimum Common Equity Tier 1 capital ratio under the standardized approach.
  • Still, the bank's stock is rising 0.5% in Monday after-hours trading.
  • Last week, Citi (C) was one of the banks that screened poorly in the Fed's 2022 stress test

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