Citigroup Inc (NYSE:C) said it would boost its share repurchase plan by up to $1.75 billion this morning, citing the need to return more to shareholders.
The additional $1.75 billion worth of buybacks is in addition to the already-planned $10.4 billion worth of capital actions. Those actions include a higher dividend of $0.16 per share and a common stock repurchase program of up to $8.6 billion.
When combined with the new repurchase plans announced today, Citi’s total planned capital actions rise to $12.2 billion.
The company commented via press release:
“We continue to make strong progress on the factors that will allow us to deliver the returns our shareholders expect and deserve – generating consistent earnings, investing in businesses well positioned to drive growth and continuing to strengthen our capital planning process. We believe this solid foundation will enable us to deliver more of the capital we generate from earnings, DTA utilization and divestments back to our shareholders, while also positioning our firm for long-term success.”
Citigroup has struggled to regain its spot among the banking world’s elite following the disastrous financial crisis of 2008-2009. The company’s stock languished around $4 per share for years until it executed a 1:10 reverse split in early 2011. Since that split, C has gained about 20% in value, but the S&P 500 has soared 64% in the same period.
Citi shares were mostly flat in Monday morning trading at $55.40.