Citigroup said it plans to reduce the number of common shares outstanding and will reintroduce a dividend after suspending payouts two years ago.
Many of the biggest U.S. banks on Friday announced dividend hikes after the Federal Reserve completed a second round of industry stress tests.
Many of the biggest U.S. banks on Friday announced dividend hikes after the Federal Reserve completed a second round of industry stress tests.
Citi [C 4.54 
0.04 (+0.89%) 
] said it will shrink the number of common shares through a 1-for-10 reverse stock split and start paying a quarterly dividend of 1 cent per share in the second quarter.
0.04 (+0.89%) ] said it will shrink the number of common shares through a 1-for-10 reverse stock split and start paying a quarterly dividend of 1 cent per share in the second quarter.The reverse split will reduces Citi's outstanding common shares to 2.9 billion. No fractional shares will be issued.
The reverse split will take effect after the close of trading on May 6."Citi is a fundamentally different company than it was three years ago," Chief Executive Vikram Pandit said in a prepared statement. "The reverse stock split and intention to reinstate a dividend are important steps as we anticipate returning capital to shareholders starting next year."
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