Citi to boost risk and control investment after operational error: CFO

[NEW YORK] Citigroup chief financial officer Mark Mason said on Monday the bank was accelerating investments in its risk and control functions following a high-profile US$900 million operational error.

The bank has planned US$1 billion in incremental investments this year to shore up the bank's infrastructure and improve risk management and compliance, Mr Mason said at an investor conference.

For the third quarter, the bank expects to continue adding to its reserves for loan losses in light of a weaker economic outlook due to the ongoing coronavirus pandemic.

However, the build is likely to be significantly lower than in the first half of the year when the bank set aside over US$7 billion a quarter for potential losses.

Overall, the bank forecasts quarterly revenue to decline in the high single digits compared to last year due to lower interest rates and a slowdown in investment banking and consumer activity.

Trading continued to be a bright spot, showing low double-digit growth for the quarter, Mr Mason said.

REUTERS