2024-07-12 22:02:00
Citigroup said annual costs were likely at the upper end of its previously expected range in recent months. The bank will face a series of regulatory sanctions.
Citigroup’s achievements Second-quarter expenses fell 2% to $13.35 billion. It was slightly better than the average analyst estimate of $13.4 billion compiled by Bloomberg.
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Even so, it’s likely Annual spending capped at $53.5 billion The Bank of New York said on Friday that figure would reach $53.8 billion. The entity’s expenditures in 2023 amounted to $56.4 billion.
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Forecast adjustments mark Banks’ attempts to cut costs may not be that simple As many investors expected, the bank has pushed ahead with a major turnaround plan under Chief Executive Jane Fraser. The effort has been hampered at times by regulatory issues and other operational missteps at Citigroup.
Earlier this month, Citigroup agreed to pay almost U.S. banking regulator fines $136 million due to “insufficient progress” in resolving two consent orders imposed on the bank in 2020 by the Federal Reserve and the Office of the Comptroller of the Currency.
It’s the latest in a series of regulatory setbacks for Citigroup. Last month, the bank and three of its rivals were ordered Improving planning for what-if liquidations following the top U.S. regulator found flaws in its plans.
Citi said at the time it was “fully committed to addressing the issues identified by regulators.”
In May this year, the Wall Street giant was also fined 61.6 million pounds ($79 million) by British regulators for trading by an employee in London that caused a sudden drop in European stock markets in 2022. Fines Germany’s financial regulator paid nearly 13 million euros ($14 million) over the same incident.
increasing income
In the second quarter, revenue from Citigroup’s five major divisions increased compared with the same period last year. That helped boost net income for the quarter to $3.2 billion, or $1.52 per share.
“Our results showOur progress in executing our strategy and the benefits of our diverse business model,” Fraser said in a statement.
The company’s banking division’s second-quarter revenue rose 38% to $1.6 billion, beating expectations. Chief Financial Officer, Citigroup Mark MasonThe company’s investment banking and capital markets teams have been helped by improved prospects for merger advice and debt and equity underwriting, it said previously.
In Citigroup’s marketing department, The bank reported revenue of $5.1 billion. The figure was higher than expected, in part because the bank made a $400 million profit from a stock swap with Visa Inc. that also benefited rival banks.
Translated by Paulina Munita.
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