Citigroup 'may not increase shareholder payouts'

18 April 2012

Shareholders at Citigroup may not receive higher dividends this year despite the fact the bank recorded improved revenue in the opening quarter of the year.

Vikram Pandit, chief executive of the financier, has warned people with a stake in the organisation to not necessarily expect a better payout on this investment in 2012.

Earlier this week, Citigroup - which handles 200 million customer accounts in 160 countries globally - revealed it achieved a total profit of $2.9 billion during this three-month timeframe.

The bank had hoped to be able to reward shareholders with bigger dividends this year, but the US Federal reserve recently opted to block this plan in the basis it may involve too much of the bank's capital.

And although the group has performed strongly so far in 2012, with Mr Pandit labelling it "one of the best capitalised banks in the world", the bank may hold off on completing this arrangement until after the introduction of Basel III.

By Tony Aynsley

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