Citi Announces 2020 Interim Stress Capital Buffer Requirement
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."
Certain statements in this release are "forward-looking statements" within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. These statements are not guarantees of future results or occurrences. Actual results and capital and other financial condition may differ materially from those included in these statements due to a variety of factors. These factors include, among others, macroeconomic and other challenges and uncertainties resulting from the COVID-19 pandemic, such as the extent and duration of the impact on public health, the U.S. and global economies, financial markets and consumer customers and corporate clients, including economic activity, employment levels and market liquidity, as well as the various actions taken in response to the challenges and uncertainties by governments, central banks and others, including Citi, and the precautionary statements included in this release. These factors also consist of those contained in Citigroup's filings with the SEC, including without limitation the "Risk Factors" sections of Citigroup's First Quarter of 2020 Form 10-Q and 2019 Form 10- K. Any forward-looking statements made by or on behalf of Citi speak only as to the date they are made, and Citi does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.
Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.
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