Citi swings to US$1.8 billion loss on slew of charges
CITIGROUP on Friday (Jan 12) reported a US$1.8 billion loss for the fourth quarter as it recorded charges to refill a government deposit insurance fund and carry out a sweeping internal reorganisation.
The loss was also fuelled by the bank stockpiling money to cover currency risks in Argentina and Russia.
The third-largest US lender by assets posted a loss of US$1.16 per share for the three months ended Dec 31. The results were eroded by US$3.8 billion in combined charges and reserves that Citigroup disclosed in a filing on Wednesday.
Revenue slid to US$17.4 billion in the quarter from a year earlier.
It was the first time Citigroup broke out earnings for its five businesses – services, markets, banking, US personal banking and wealth, which were previously housed under broader divisions.
The new structure is part of CEO Jane Fraser’s efforts to cut bureaucracy, increase profits and boost a stock that has lagged peers.
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Citi’s 2023 revenue rose to US$78.5 billion from a year earlier. Still, its net income fell to US$9.2 billion, compared with a year earlier.
Chief financial officer Mark Mason said last month that Citi expects to complete its overhaul in the first quarter of 2024. The lender aims to reduce annual expenses to a range of US$51 billion to US$53 billion.
In November, Citi announced fresh leadership changes after saying it will reduce management layers to eight from 13.
Under the new structure, the leaders of Citi’s five major businesses will report directly to the CEO. It will also cut regional leadership role outside North America. REUTERS
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