2024-01-12 13:46:35
normal
Revenues decline to 17.44 billion
January 12, 2024
17:46 pm
Citibank branch in New York (Archyde.com)
Citigroup reported a loss of $1.8 billion in the fourth quarter of 2023, as it recorded charges to replenish the government’s deposit insurance fund and implement a comprehensive internal reorganization. The loss also increased the bank’s hoarding of funds to cover currency risks in Argentina and Russia.
The third-largest US bank by assets announced a loss of $1.16 per share for the three months ending December 31. The results were eroded by $3.8 billion in fees and combined reserves that Citigroup disclosed in a disclosure on Wednesday.
Revenue fell to $17.44 billion in the quarter compared to the previous year.
It was the first time Citigroup had made profits for its five businesses: Services & Markets, Banking, US Personal Banking and Wealth, which had previously fallen under broader divisions.
The new structure is part of CEO Jane Fraser’s efforts to trim bureaucracy, increase profits and boost shares that have lagged behind peers.
Citi’s revenues for 2023 rose to $78.5 billion compared to the previous year. However, its net income fell to $9.2 billion, compared to the previous year.
Comprehensive reform process
CFO Mark Mason said last month: “Citi expects to complete the comprehensive reform process in the first quarter of 2024. The bank aims to reduce annual expenses to a range of $51 billion to $53 billion.”
In November, Citi announced new leadership changes, after saying it would reduce management layers to eight from 13.
Under the new structure, leaders of Citi’s top five companies will report directly to the CEO. It will also reduce the regional leadership role outside North America.
The bank’s stock rose 13.7% in 2023. However, Citi shares underperformed the S&P 500, which rose about 24.2%. (Archyde.com)
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