Citigroup Expects Announced Reorganization To Complete In Q1: Report (UPDATED)
Portfolio Pulse from Lekha Gupta
Citigroup Inc (NYSE:C) CFO Mark Mason announced at the Goldman Sachs conference that the bank's major reorganization will cost approximately $1 billion in restructuring and severance charges, aiming to complete by the end of Q1 next year. The plan includes management downsizing and potential layoffs. Citigroup aims to reduce annual expenses to $51-$53 billion to meet profit targets, excluding a special FDIC assessment of $1.65 billion. The bank forecasts 2023 expenses at $54 billion and revenue at the lower end of previous guidance, around $78 billion. Post-restructuring, Citigroup targets an 11%-12% return on average tangible common shareholders equity in the medium term. Citigroup shares rose 1.67% to $48.66.
December 07, 2023 | 6:42 pm
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POSITIVE IMPACT
Citigroup's reorganization is expected to cost $1 billion, with the goal of reducing annual expenses and improving profitability. The bank's shares have responded positively to the news, indicating investor optimism.
The announcement of a $1 billion reorganization cost is significant as it shows Citigroup's commitment to streamlining operations and improving efficiency. The positive price action suggests that investors are optimistic about the potential for cost savings and improved profitability. The short-term impact is likely to be positive as the market digests the news and anticipates the benefits of the reorganization.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100