Citigroup Increases Dividend by 11.7% Amid Strong Earnings Performance
Citigroup (C) announced a dividend increase of 11.7%, raising its quarterly payout to $0.67 per share from the previous $0.60, effective for shareholders on record as of August 3 and payable by August 28, 2026. This follows strong second-quarter earnings in which Citigroup reported a net income of $5.8 billion and revenue of $24.77 billion — both exceeding expectations. The bank's return on tangible common equity rose to 13%, signaling improved profitability. The dividend hike reflects confidence in the company’s financial health, with a payout ratio at just 21.28%. Citigroup has been undergoing a multiyear turnaround under CEO Jane Fraser and is now offering a yield of about 2.4% — up from around 1.7% earlier this year as its stock price climbed. The bank’s performance improvements are supported by cost control, with an efficiency ratio at 57.4%, better than expected. Additionally, Citigroup has been expanding into new markets and technologies such as real-time cross-border payments through a partnership with Siam Commercial Bank (SCB) and private credit initiatives in collaboration with BlackRock.