- ORIGINAL NEWS
Citigroup posts $1.8 billion fourth-quarter loss after litany of charges
- SUMMARY
Citigroup reported a $1.8 billion loss in the last quarter of 2022 due to a combination of factors.
These factors include risks in overseas markets, issues from regional banking crises, and restructuring under CEO Jane Fraser’s leadership.
The charges resulted in a $4.66 billion hit to earnings, about $2 per share.
Citigroup plans to reduce its workforce by 20,000 employees and spend up to $1 billion on severance costs over time.
Despite the loss, their institutional services, personal banking in the U.S., and investment banking divisions showed positive performance.
Citigroup’s CEO acknowledged that the results were disappointing but emphasized the progress made in simplifying the bank’s operations.
- NEWS SENTIMENT CHECK
- Overall sentiment:
negative
Positive
“Earnings: 84 cents a share, adjusted, may not compare with 81 cents, expected.”
“Institutional services operations, U.S. personal banking and investment banking performed well, according to the bank.”
Negative
“Citigroup posted a $1.8 billion fourth-quarter loss after booking several large charges tied to overseas risks, last year’s regional banking crisis and CEO Jane Fraser’s corporate overhaul.”
“Citigroup said it expects to reduce its headcount by 20,000 and incur up to $1 billion more in severance costs over the medium term.”