Citigroup Reports $1.8 Billion Net Loss for Q4 2023 & $9.2 Billion Net Profit for FY2023, Citi Wealth Including Citi Private Bank & Citigold Reported Net Income $5 Million, Citi Banking Net Loss of $322 Million, To Cut 20,000 Jobs Representing 8.3% of 240,000 Employees
16th January 2024 | Hong Kong
Citigroup has reported $1.8 billion net loss for Q4 2023 & $9.2 billion net profit for FY2023. Citi Wealth (including Citi Private Bank & Citigold) reported net income of $5 million and Citi Banking reported net loss of $322 million for FY 2023. Citigroup is also cutting 20,000 jobs, representing 8.3% of Citigroup 240,000 employees. Citigroup current market value is $100 billion (15/1/24). Citi Wealth FY2023 Results – 1) Wealth revenues of $1.7 billion decreased 3%, driven by lower deposit spreads, partially offset by lower mortgage funding cost and higher investment fee revenues. 2) Private Bank revenues of $542 million decreased 10%, driven by lower deposit spreads and lower deposit and loan volumes, partially offset by higher investment revenue. 3) Wealth at Work revenues of $211 million increased 8%, driven by higher mortgage and investment revenue, partially offset by lower deposit revenue. 4) Citigold revenues of $918 million decreased 1%, as lower deposit spreads were partially offset by growth in investment revenue globally and higher deposit revenue in Asia. 5) Wealth operating expenses of $1.6 billion increased 4%, largely driven by investments in risk and controls and technology, partially offset by productivity savings. Wealth cost of credit was $4 million, as net credit losses of $31 million were largely offset by an ACL release for loans and unfunded commitments of $26 million. 6) Wealth net income was $5 million, as the lower revenues were largely offset by the higher expenses. In 2023, Citigroup announced more than 300 senior manager job cuts and management layers reduced from 13 to 8 layers, reduced 15% of functional roles & eliminated 60 committees. In September 2023, Citigroup announced 5 new senior management structure in 5 key businesses to speed up decision-making & reporting to Citigroup CEO Jane Fraser. Shahmir Khaliq was appointed as Citi Head of Services, Andrew Morton as Head of Markets, Peter Babej as Interim Head of Banking, Andy Sieg as Head of Wealth, and Gonzalo Luchetti as Head of US Personal Banking. More info below:
” Citigroup Reports $1.8 Billion Net Loss for Q4 2023 & $9.2 Billion Net Profit for FY2023, Citi Wealth Including Citi Private Bank & Citigold Reported Net Income $5 Million, Citi Banking Net Loss of $322 Million, To Cut 20,000 Jobs Representing 8.3% of 240,000 Employees “
Citi CEO Jane Fraser: “While the fourth quarter was very disappointing due to the impact of notable items, we made substantial progress simplifying Citi and executing our strategy in 2023. We restructured around five core, interconnected businesses to align our organization with our strategy and to provide greater transparency into their performance. Revenues ex-divestitures grew by 4% and we met our full-year expense guidance. We increased our CET1 ratio to 13.3%, grew our Tangible Book Value per share by 6% to $86.19, and returned $6 billion in capital to our shareholders in the form of common dividends and share buybacks. Services revenues were up 16% for the year driven by share gains and client wins.
In Markets, our fourth quarter Fixed Income results were disappointing as we saw a significant slowdown in December. We had a decent quarter in Equities, particularly in Derivatives, and saw growth in Prime balances. Investment Banking revenue continued to be impacted by a weak wallet globally while activity picked up in the fourth quarter with revenues up 27%. While investment activity in Asia rebounded during the quarter, up 21%, Wealth revenues were down in 2023 and we fully recognize that this business isn’t where it needs to be. USPB was a bright spot with every product up double-digits in the quarter and up 14% overall for the year. Given how far we are down the path of our simplification and divestures, 2024 will be a turning point as we’ll be able to completely focus on the performance of our five businesses and our Transformation. We remain confident in our ability to adapt to evolving capital and macro environments to reach our medium-term targets and return capital to our shareholders, whilst continuing the investments needed for our Transformation.”
Citigroup with 240,000 Employees Announced 300 Senior Managers Job Cuts & Management Layers Reduced from 13 Layers to 8 Layers, Reduced 15% of Functional Roles & Eliminated 60 Committees, 5 New Senior Management Structure in 5 Key Businesses to Speed Up Decision-Making & Reporting to CEO Jane Fraser in September 2023
23rd November 2023 – Citigroup (22/11/23: $86.1 billion market value) with 240,000 employees has announced more than 300 senior manager job cuts and management layers reduced from 13 to 8 layers, reduced 15% of functional roles & eliminated 60 committees. In September 2023, Citigroup announced 5 new senior management structure in 5 key businesses to speed up decision-making & reporting to Citigroup CEO Jane Fraser. Shahmir Khaliq was appointed as Citi Head of Services, Andrew Morton as Head of Markets, Peter Babej as Interim Head of Banking, Andy Sieg as Head of Wealth, and Gonzalo Luchetti as Head of US Personal Banking. Citigroup (20/11/23): “Today we shared with our colleagues the next layer of changes across many of our businesses and functions as we continue to align Citi’s organizational structure with our new, simplified operating model. As we’ve acknowledged, the actions we’re taking to reorganize the firm involve some difficult, consequential decisions, but we believe they are the right steps to align our structure with our strategy and ensure we consistently deliver excellence to our clients.”
About Citi
Citi is a preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in its home market of the United States. Citi does business in nearly 160 countries and jurisdictions, providing corporations, governments, investors, institutions and individuals with a broad range of financial products and services.
Citigroup with 240,000 Employees to Announce Job Cuts & Management Changes, Announced 5 New Senior Management Structure in 5 Key Businesses to Speed Up Decision-Making & Reporting to CEO Jane Fraser in September 2023
18th November 2023 – Citigroup (18/11/23: $86.8 billion market value) with 240,000 employees is reported to be announcing job cuts & management changes, having announced 5 new senior management structure in 5 key businesses to speed up decision-making & reporting to Citigroup CEO Jane Fraser in September 2023. Shahmir Khaliq was appointed as Citi Head of Services, Andrew Morton as Head of Markets, Peter Babej as Interim Head of Banking, Andy Sieg as Head of Wealth, and Gonzalo Luchetti as Head of US Personal Banking.
Citigroup Announces 5 New Senior Management Structure in 5 Key Businesses to Speed Up Decision-Making & Reporting to CEO Jane Fraser, Shahmir Khaliq as Head of Services, Andrew Morton as Head of Markets, Peter Babej as Interim Head of Banking, Andy Sieg as Head of Wealth, Gonzalo Luchetti as Head of US Personal Banking
16th September 2023 – Citigroup has announced 5 new senior management structure in 5 key businesses to speed up decision-making & reporting to Citigroup CEO Jane Fraser, with Shahmir Khaliq appointed as Citi Head of Services, Andrew Morton as Head of Markets, Peter Babej as Interim Head of Banking, Andy Sieg as Head of Wealth, and Gonzalo Luchetti as Head of US Personal Banking.
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