Citi completes annual stress test process with reduced stress levels.

Citi recently announced the successful completion of the 2025 annual supervisory stress test process conducted by the Federal Reserve Board. Following this evaluation, Citi’s indicative Stress Capital Buffer (SCB) requirement has decreased from 4.1% to 3.6%. In addition, the preliminary Standardized Common Equity Tier 1 (CET1) capital ratio regulatory requirement has been lowered to 11.6% from the previous 12.1%. This adjustment is based on Citi’s Standardized CET1 capital ratio of 13.4% as of March 31, 2025, which exceeded the regulatory requirement by 130 basis points and incorporated a 100 basis point internal management buffer. The Federal Reserve Board is expected to provide the final SCB requirement to Citi later in the quarter.

As part of its planned capital actions, Citi intends to raise its quarterly common stock dividend from $0.56 to $0.60 per share, subject to approval by Citi’s Board of Directors on a quarterly basis, starting in the third quarter of 2025. Moreover, Citi initiated a $20 billion share repurchase program in January 2025 and has repurchased $3.75 billion of shares year-to-date.

Citi’s CEO, Jane Fraser, expressed satisfaction with the results, highlighting the company’s deliberate efforts to reduce risk through business model refinement and Transformation execution while enhancing earnings potential. Fraser emphasized Citi’s resilience and robust capital position, even under challenging circumstances. She reiterated Citi’s commitment to serving clients, meeting regulatory expectations, and delivering shareholder value.

A pending proposal from the Federal Reserve Board regarding the averaging of the maximum decline in CET1 capital from the current and preceding year’s stress test outcomes could impact the SCB requirement for bank holding companies subject to the rule. The effective date of this requirement remains subject to the proposal’s implementation.

Citi’s global presence spans more than 180 countries and territories, offering an array of financial products and services to corporations, governments, investors, institutions, and individuals. With a focus on cross-border banking partnerships, wealth management, and retail banking in the U.S., Citi maintains a prominent position in the financial industry.

Certain statements within this announcement are considered “forward-looking statements” pursuant to the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations but are subject to evolving circumstances and uncertainties. Citi’s final Stress Capital Buffer requirement and actual capital levels may deviate from the projections in these statements due to various factors, including macroeconomic challenges, regulatory developments, and other risks outlined in Citi’s filings with the U.S. Securities and Exchange Commission.

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