Citi Group faced first-quarter challenges with rising expenses for severance payouts to laid-off staff and investments in replenishing a government deposit insurance fund, impacting its performance.
In January, Citigroup was expected to cut at least 20,000 jobs over the next two years as it reported its worst quarter in 14 years. In its restructuring, Citi foresees cutting 7,000 jobs, aiming for annual savings of $1.5 billion.
The group has reported net income for the first quarter of 2024 of $3.4 billion, or $1.58 per diluted share, on revenues of $21.1 billion. This compares to net income of $4.6 billion, or $2.19 per diluted share, on revenues of $21.4 billion for the first quarter of 2023.
CEO Jane Fraser said, ” Last month marked the end of the organizational simplification we announced in September. The result is a cleaner, simpler management structure that fully aligns with and facilitates our strategy. It will also help us execute our Transformation, progress as we retire multiple legacy platforms, streamline end-to-end processes, and strengthen our risk and control environment.
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“Our balance sheet is strong across the board, an intentional result of our high-quality assets, robust capital and liquidity positions, and rigorous risk management. We returned $1.5 billion in capital to our common shareholders while increasing our CET1 ratio to 13.5%. With the organizational simplification behind us and a good quarter under our belt, we have started this critical year on the right foot”, Jane Fraser added.
Revenues decreased 2% from the prior-year period, on a reported basis. Excluding divestiture-related impacts of $1 billion, primarily consisting of the gain from the sale of the India consumer business(5) in the prior-year period, revenues were up 3% year over year.
This increase in revenues was driven by growth across Banking, U.S. Personal Banking (USPB), and Services, partially offset by declines in Markets and Wealth.
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