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Yesterday at the Goldman Sachs conference, Citigroup Inc C Chief Financial Officer Mark Mason reportedly disclosed the bank’s largest reorganization in decades will cost about $1 billion for charges related to restructuring and severance.

The overhaul is expected to be fully completed by the end of the first quarter next year, reported Reuters.

According to the report, Citigroup plans to trim down management and potentially lay off thousands of employees.

RelatedCitigroup Restructures, Targets 10% Senior Management Layoffs

The bank expects to reduce annual expenses to $51 billion-$53 billion, which can help meet profit targets, as per the report.

The bank projects 2023 expenses of $54 billion, which excludes a special assessment from the Federal Deposit Insurance Corp. of around $1.65 billion.

Mason anticipates some of the restructuring charges (about $200 million) to be booked in Q4 and sees 2023 revenue at the lower of its previous guidance at around $78 billion.

After the restructuring, the bank expects to attain a medium-term return on average tangible common shareholders equity of 11% to 12% in the medium term. 

Also ReadCitigroup Eyes New Private Credit Strategy Next Year: Report

Price Action: C shares are trading higher by 1.67% at $48.66 on the last check Thursday.

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