WASHINGTON — Citigroup Inc. will re-submit its capital plan to the Federal Reserve Board on Monday, the company said Friday.
The New York-based bank said it has no plans to request any return of capital to shareholders in its 2012 re-submission and postponed making decisions for next year. The Fed is expected to act on the plan later this year.
"We have decided not to request any additional return of capital in the 2012 re-submission," Citi said in a statement. "We will make decisions regarding the 2013 capital plan later this year."
Out of the 19 institutions that underwent stress testing in March by the Fed, Citi was one of four that failed to pass the central bank's toughest assessment. Under the Fed's severe economic projections, Citi would have held a capital ratio of 4.9%, 10 basis below the minimum requirement, if it returned capital to shareholders as planned.
The Fed allowed the bank to continue its existing dividends on its preferred stock and its common stock and didn't object to the company redeeming certain series of outstanding trust preferred securities. But the central bank blocked Citi from its proposed return of capital to shareholders.
Citi was required to submit a new capital plan by June 11. The plan must be approved by regulators.
According to the company, at the end of the first quarter, Citi held an estimated Tier 1 common ratio of 7.2% under Basel III and held $500 billion in cash and available-for-sale securities.