Citigroup Inc. is not looking to halt its dividend in light of the current environment, CEO Michael Corbat told CNBC in an interview.
"Our dividend is sound, and we plan on continuing to pay it," Corbat said when asked by interviewer Jim Cramer if the company is considering suspending its dividend. Citi increased its quarterly dividend to 51 cents per share from 45 cents per share under its latest capital plan, which received a nonobjection from the Federal Reserve under the Comprehensive Capital Analysis and Review in June 2019.
In the interview, Corbat also said U.S. banks are coming "from a different position, a position of probably some more strength" compared to European banks in terms of capital levels and earnings. The European Central Bank previously urged banks to suspend dividends and refrain from stock repurchases in light of the novel coronavirus pandemic, and some European banks have complied with the recommendation.
The eight U.S.-based global systemically important banks announced in March they will suspend stock repurchases until the second half of 2020 due to the pandemic.