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Citigroup suggests that after recent months, annual costs may be at the upper end of the previously expected range Banks will face a series of Regulatory sanctions.
Citigroup’s achievements Reduce expense In the second quarter, it increased by 2% to $13.35 billion. That was slightly better than the average analyst estimate of $13.4 billion compiled by Bloomberg.
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Even so, it is likely Annual spending capped at $53.5 billion The New York bank said Friday that figure would reach $53.8 billion. In 2023, the entity’s expenses would reach $56.4 billion.
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The forecast adjustment marks 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 Officer Jane Fraser. The effort has at times been hampered by Citigroup’s regulatory problems and other operational missteps.
Earlier this month, Citigroup agreed to pay nearly US bank regulator fined $136 million Due to “insufficient progress” in resolving two consent orders imposed on the bank by the Federal Reserve and the Office of the Comptroller of the Currency in 2020.
It is the latest in a series of regulatory setbacks for Citigroup. Last month, the bank and three of its rivals were ordered to Improved planning for hypothetical liquidations After the top U.S. regulator found flaws in its plans.
Citi said at the time that it was “fully committed to addressing the issues identified by the regulators.”
In May, the Wall Street giant was also fined 61.6 million pounds ($79 million) by British regulators for a London-based employee’s trading that led to a sudden drop in European stock markets in 2022. A few weeks later, a unit of the bank was fined nearly 13 million euros ($14 million) by Germany’s financial regulator over the same incident.
increasing income
Revenue at Citigroup’s five main divisions rose in the second quarter from a year earlier. That helped boost net income for the quarter to $3.2 billion, or $1.52 a share.
“Our results show thatOur progress in executing our strategy and the benefits of our diversified business model,” Fraser said in the statement.
The company’s banking division’s second-quarter revenue grew 38% to $1.6 billion, beating expectations. Citigroup’s chief financial officer Mark MasonIt previously said that improved prospects for merger advisory and debt and equity underwriting had helped the firm’s investment banking and capital markets teams.
In Citigroup’s markets division, The bank reported revenue of $5.1 billion. The figure was higher than expected, in part because the bank earned $400 million in profits from a stock swap with Visa Inc. that also benefited rival banks.
Translated by Paulina Munetta.
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