Citigroup warns investors it may miss its target for return on tangible common equity following the Fed’s rejection of the bank’s capital plan last month Citigroup Inc (C) has warned investors that it may not be able to achieve its goal of returning more than 10% on tangible common equity in 2015. Citigroup failed the CCAR 2014 last month due to quantitative reasons after which the Federal Reserve rejected its capital plan. Citigroup’s rejected plan included quintupling its dividends to five cents per share and increasing the share buyback authorization to $6.4 billion. Citigroup reported tangible common equity of 8.2% in fiscal year 2013 (FY13), an increase of 30 basis points over the previous year. Return on tangible common equity is important to investors because it helps them compare profitability of competing banks. JPMorgan Chase & Co. (JPM) had the highest return on tangible equity of 14% among the big four banks in FY13. The profitability measure is also important to Citigroup Chief Executive Officer Michael Corbat, who had vowed to increase the bank’s profitability when he took charge almost two years ago. Last year in March, Corbat said Citigroup had planned to increase its return on tangible common equity to 10% or higher by 2015.