(Reuters) – Citigroup reported a drop in first-quarter profit on Friday, due in part to higher severance pay and reserves for the government’s deposit insurance fund.
The net profit of the third American bank in terms of assets fell to 3.4 billion dollars (3.1 billion euros), or 1.58 dollars per share, during the quarter ending March 31. , a figure to compare to the 4.6 billion dollars recorded a year earlier.
The American bank has undergone its biggest restructuring in decades in recent months, initiated last September by its managing director Jane Fraser, in order to simplify the group and improve its performance.
“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,” Jane Fraser said in a statement. communicated.
In its earnings presentation to investors, Citi said it planned to reduce its workforce by 7,000 people and achieve annual savings of $1.5 billion from the reorganization.
The stock fell 1% in pre-market trading.
The costs of the reorganization pushed Citi’s expenses to $14.2 billion.
The bank also paid $251 million to a fund of the US Federal Deposit Insurance Agency, whose reserves were used in 2023 after the failure of three regional banks.
Citi posted a loss of $1.8 billion in the previous quarter.
(Reporting Tatiana Bautzer in New York and Manya Saini in Bangalore; Diana Mandiá, editing by Federica Mileo and Sophie Louet)
Copyright © 2024 Thomson Reuters
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
