2017.06.2820:21:00UTC+00Citigroup Bolsters Buybacks, Dividends Beyond Estimates

Citigroup Inc. has been given permission to give back almost $19 billion capital to shareholders after getting a green light after a difficult regulatory test.

Citigroup, the fourth-biggest U.S. lender by assets said it is looking to repurchase up to $15.6 billion of common stock over the following year and increase its quarterly dividend by twofold to 32 cents per share, bringing total payouts to $18.9 billion.

The total dividend is 54 percent higher than the Fed's approved level last year and around 1.25 times the profits that analysts expect Citigroup to earn over the next four years. Analysts had anticipated Citigroup would gain the right to hike payouts to almost 1.12 percent of annual profits.

Citigroup announced the details after the Fed said 34 largest U.S. banks passed the second part of the annual stress test and would therefore be able to put capital to work in ways other than solidifying their balance sheets.

Citigroup shares rose 2.3 percent in late hours trading at $66.68, against a disclosed net worth of $65.94 per share as of March 31.