NEW YORK (
CEO Vikram Pandit said that in 2012 the bank will look to buy back stock and raise its dividend.
"Over time we want to get to a normalized dividend policy reflecting that we are a higher-growth bank," Pandit said on the first-quarter earnings conference call Monday. "With the stock trading below book value, it is interesting to think about share repurchases."
Citigroup reported net income of
, beating analyst expectations by a penny. A survey of analysts polled by Thomson Reuters expected the bank to earn 9 cents a share. Citigroup reported net income of $4.4 billion or 15 cents a share a year earlier.
Citigroup reinstated a quarterly dividend of a penny per common share in the second quarter of 2011. The dividend will follow a 1-for-10 reverse stock split of Citigroup common stock on May 6.
"There are a couple reason clients can't buy stocks that are under $5 or $10 dollars, and some clients that can't buy stocks without a dividend," said Pandit.
Pandit said he would not go into detail about plans for Citigroup's future dividend and buyback strategy.
"I would guess it would be a combination of the two
buybacks and dividends, but we need to wait for regulators' thoughts," said Pandit.
--Written by Maria Woehr in New York.
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