Citi reinstates quarterly dividend at 1 cent

NEW YORK (Reuters) - Citigroup Inc <C.N> declared its first dividend in over two years on Friday, announcing that it will pay investors a penny per share on June 17.

The third-largest U.S. bank, which needed $45 billion in U.S. government bailouts to survive the financial crisis, said in March it planned to reinstate a 1-cent quarterly dividend, after shrinking its number of shares outstanding with a 1-for-10 reverse stock split.

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The split took effect on Monday, shrinking Citigroup's share count to about 2.9 billion from 29 billion.

The bank's shares were down 36 cents to $42.06 on Friday.

(Reporting by Maria Aspan, editing by Gerald E. McCormick)