Citizens Receives No Objection to Capital Plan
Citizens Financial Group announced that the Board of Governors of the Federal Reserve completed its review of the company’s 2015 Capital Plan in connection with its Comprehensive Capital Analysis and Review (CCAR) of the nation’s largest bank holding companies and has not objected to the plan.
The CCAR results follow the Federal Reserve’s March 5, 2015 publication of Dodd-Frank Act Stress Test (DFAST) results. In that test, across every category, CFG’s projected capital ratios ranked in the top quartile of the 31 largest bank holding companies under the hypothetical Supervisory Severely Adverse Stress scenario.
“I’m very pleased by today’s CCAR result, which represents the culmination of significant effort across the organization to improve our capital planning, stress-testing and risk management processes,” said Chairman and CEO Bruce Van Saun. “Citizens has made great strides over the past year in many areas, though we recognize that there is more to do. We will continue to stay focused on enhancing our capabilities going forward.”
Citizens’ 2015 Capital Plan was designed to ensure a strong capital position, provide adequate returns to its shareholders, and normalize its capital structure and includes a proposed quarterly dividend rate of $0.10 per share, or $0.40 per share on an annualized basis, for 2015, subject to consideration and approval by the Company’s Board of Directors. The plan also includes capital distributions of $500 million over the course of 2015 in the form of share repurchase transactions funded by preferred stock and subordinated debt issuances.