Citigroup Inc. today released the following statement on the re-submission of
its 2012 Comprehensive Capital Analysis and Review (CCAR) capital plan and the
redemption of trust preferred securities issued by Citigroup Capital XII and
Citigroup Capital XXI:
Statement on Re-Submission of 2012 CCAR Capital Plan
“In March, the Federal Reserve released the results of its hypothetical severe
stress test scenario as part of the 2012 CCAR. The results showed that Citi
comfortably exceeded the stress test requirements without Citi's proposed
capital actions. However, while the Federal Reserve did not object to Citi
conducting certain capital actions, such as the redemption of trust preferred
securities as described below, and to continue its current dividend, it did
not approve Citi's request to return additional capital to its shareholders.
“Citi will re-submit its capital plan on Monday, June 11 as required. The
Federal Reserve will act on the plan later this year. As we noted in April,
the Federal Reserve's schedule requires us to submit our 2013 capital plan in
January. In light of that timing, we have decided not to request any
additional return of capital in the 2012 re-submission. We will make decisions
regarding the 2013 capital plan later this year. In the meantime, we will
continue to build additional capital through earnings and the ongoing
reduction of non-core assets.
“Citi is one of the best capitalized banks in the world. At of the end of the
first quarter of 2012, our Tier 1 Common ratio was 12.5% under Basel I and an
estimated 7.2% under Basel III, Citi is also highly liquid, with close to $500
billion in cash and available-for-sale securities, representing approximately
26% of the balance sheet.
“These strong capital and liquidity levels result from the decisions we made
to make Citi a fundamentally different company today than it was before the
financial crisis. We have overhauled risk management and focused on the basics
of banking, leveraging our unique presence throughout the emerging and
developed markets to serve our clients and the real economy. We have sold more
than 60 businesses that were non-core to our strategy, helping to drive the
approximately 75% reduction in the size of Citi Holdings. At of the end of the
first quarter, Citi Holdings assets were $209 billion, or just 11% of Citi's
total balance sheet.
“With greatly improved financial strength, a highly liquid balance sheet, and
our strategy showing results, Citi will continue to build its capital levels
for the benefit of our shareholders.”
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