Citi Announces 2020 Interim Stress Capital Buffer Requirement
New York – The Federal Reserve Board communicated that Citi's interim Stress Capital Buffer (SCB) requirement would be 2.5% for the four quarter window of 4Q 2020 – 3Q 2021. Incorporating this SCB, and a GSIB surcharge of 3%, results in a minimum regulatory requirement of 10% for both Standardized (using SCB) and Advanced (using the Capital Conservation Buffer – "CCB") Approaches relative to Citi's Common Equity Tier 1 ratio of 11.2% using Advanced Approaches as of the first quarter of 2020.
Michael Corbat, Citi CEO, said: "These results are consistent with our expectations, and indicate that we have the capacity to withstand extreme stress. The strength of our franchise has allowed us to support our customers, clients and communities around the world as we navigate through this crisis, while maintaining significant capital and liquidity. While we will continue to evaluate our planned capital actions relative to the most recent financial and macroeconomic conditions, we believe we are well positioned to continue to support our customers and the broader economy, while also continuing with our planned capital actions. The planned capital actions include common dividends of $0.51 per share in the third quarter and over the four quarters covered by the 2020 CCAR cycle (i.e., 4Q 2020 – 3Q 2021), subject to the latest financial and macroeconomic conditions."