Citigroup Inc. completed the full redemption of its Series X preferred stock on February 18, 2026, after announcing the transaction on February 5, 2026. The bank paid $2.3 billion to holders of record on February 6, 2026, and the redemption extinguishes the aggregate liquidation preference attached to the 3.875% fixed‑rate, non‑cumulative preferred shares that were originally issued on February 18, 2021 and became callable on the redemption date.
The Series X preferred shares carry a quarterly dividend of $9.6875 per depositary share and a 3.875% annual coupon. Because the shares are perpetual, Citigroup can choose to redeem them only after the call date; the February 18, 2026 call provision was exercised in line with the company’s capital‑management schedule. Holders of record received the regular dividend before the redemption, ensuring no loss of income for investors who held the shares through the record date.
The decision to redeem the Series X series reflects a strategic effort to lower the bank’s cost of capital and strengthen its regulatory capital profile. By removing $2.3 billion of preferred equity, Citigroup reduces its leverage and improves its CET1 ratio, allowing the bank to deploy capital toward growth initiatives, share buybacks, or higher dividends. The relatively low 3.875% coupon also makes the preferred equity more expensive than newer debt issuances, so the redemption aligns the capital structure with current market rates and regulatory expectations.
This redemption is part of a broader pattern of capital‑structure optimization. Citigroup previously redeemed its Series W preferred stock in December 2025 and has indicated that it will continue to evaluate other preferred series for potential call. The company’s capital‑management strategy focuses on balancing economic value, regulatory capital requirements, and market conditions to maintain a robust capital base while preserving flexibility for future financing.
For shareholders, the redemption signals that Citigroup is actively managing its balance sheet to create value. The removal of preferred equity reduces the bank’s capital‑cost burden and may free up capital for future dividend increases or share repurchases. While the transaction does not alter the bank’s core business operations, it enhances the financial foundation that supports long‑term growth and resilience in a changing regulatory environment.
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