Citigroup gets highest Fed-test results among American banks

16/03/2015 09:06 AST

Prince Alwaleed bin Talal, chairman of Kingdom Holding Company (KHC), congratulated Mike Corbat, CEO of Citigroup, for passing the Federal Reserve’s stress tests with highest and cleanest results among top Wall Street banks.

Prince Alwaleed also congratulated and thanked Corbat for increasing dividend payment from 4 cents to 20 cents per annum, which is equal to 400 percent increase, and initiative of a buyback program of as much as $7.8 billion of stocks representing five percent of the group’s market-cap.

Moreover, Kingdom Holding Company (KHC) and Prince Alwaleed are among largest investors in Citigroup. Furthermore, Citigroup’s share price climbed to $54 after announcing the Fed-tests results, in extended trading.

In 2014, Prince Alwaleed met Corbat at the prince's office in Riyadh. Prince Alwaleed and Corbat discussed the latest developments in Citigroup and future plans of the company.

In July 2014, Prince Alwaleed congratulated Corbat for Citigroup’s Q2 positive results.

In 2013, Prince Alwaleed was received by Corbat at the company headquarters in New York. In the same year, Prince Alwaleed received Corbat at his office in Riyadh. The two discussed various topics related to their respective companies. Prince Alwaleed hosted a dinner in honor of Corbat and his wife at Kingdom Resort.

Prince Alwaleed is a prominent investor in Citigroup through KHC, which operates in over 160 countries in the world since 1991 and is the largest single shareholder in the company.

In 2008, Prince Alwaleed participated in a $ 12.5 billion private offering of convertible preferred securities of Citigroup. The new direct investment was made alongside an exclusive group of leading international investors. The prince converted the preferred shares in 2009 into common shares (voting shares).

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