The number three U.S. bank was among the few losers when the Federal Reserve released its stress test results in March, allowing most banks to raise dividends and announce share buybacks.

The Federal Reserve's schedule requires Citi to submit its 2013 capital plan in January. "In light of that timing, we have decided not to request any additional return of capital in the 2012 resubmission," Citi said.

The bank also said it will continue to build additional capital through the ongoing reduction of non-core assets.

On a post-earnings conference call in April, CEO Vikram Pandit had hinted that Citi may not ask regulators for permission to raise dividend or buy back stock this year.

Citi also said it has decided to redeem two series of Citi trust preferred securities, which it expects will decrease its Tier 1 Capital by about $4.9 billion.

The bank's Tier 1 Common capital and related Tier 1 common ratio, under Basel I and as estimated under Basel III, will not be affected by these redemptions, it said in a statement.

(Reporting by Aman Shah in Bangalore; Editing by Joyjeet Das)

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