Citi to resume dividend

Citigroup plans to reduce the number of outstanding common stock shares, and to reintroduce a dividend beginning in second quarter 2011, it said today.

Citi, which received $45bn (£28bn) from the US government in 2008, has not paid a dividend since 2009 as it has strengthened its balance sheet post-crisis.

Chief executive Vikram Pandit had previously said it would resume dividend payments in 2012.

The New York-based bank added that it will shrink the number of common shares through a one-for-ten reverse stock split, and reinstate a quarterly dividend, at one cent per share, in the second quarter.

The move reduces Citi's outstanding common stock to 2.9 billion shares from 29 billion.

The reverse split will take effect after the close of trading on May 6, it said.