Citigroup announced on December 3, 2025 that it will redeem $1.5 billion of its Series W preferred stock, a 4.000% fixed‑rate, non‑cumulative preferred share. The redemption will be completed on December 10, 2025, and holders of record on November 26 will receive the regular quarterly dividend of $10.00 per share.
The move is part of Citigroup’s ongoing liability‑management strategy, aimed at tightening its capital structure and improving its Common Equity Tier 1 (CET1) ratio. By removing preferred equity, the bank frees up capital that can be deployed for share buybacks, dividend increases, or other strategic initiatives, while also potentially lowering its overall cost of capital.
Citigroup has been executing a broader transformation program that includes a $20 billion share‑repurchase plan, a higher common‑stock dividend, and a reduction in its Stress Capital Buffer. The Series W redemption aligns with these efforts, signaling management’s focus on optimizing the balance sheet and enhancing operational efficiency.
The redemption reduces the bank’s preferred equity balance, which is expected to strengthen its capital ratios and provide greater funding flexibility. This action also reflects the company’s assessment that the economic value of the Series W preferred stock has declined relative to alternative funding sources, making the redemption a prudent step in its capital‑management framework.
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