Citigroup Says Fed Didn't Approve Plan to Return Added Capital, Will Resubmit Without Capital Request June 11, Will Build Capital Through Earnings and Selling Non-Core Assets

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.”