Citi CEO Says About 5,000 Managers Will Be Eliminated In Reorganization; Loss Rates Are Back To Pre-Pandemic Levels Driven By Customers With Lower FICO Scores; Bank Can Grow Revenue Ex-Divestitures 4% To 5% Over The Medium Term
Portfolio Pulse from Benzinga Newsdesk
Citi CEO announced during a conference call that approximately 5,000 managerial positions will be cut as part of a reorganization effort. The bank is also experiencing loss rates returning to pre-pandemic levels, primarily due to customers with lower FICO scores. Despite these challenges, the bank expects to grow its revenue by 4% to 5% over the medium term, excluding the impact of divestitures.

January 12, 2024 | 5:19 pm
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Citi plans to eliminate about 5,000 managerial roles in a reorganization, sees loss rates return to pre-pandemic levels due to lower FICO score customers, but still aims for 4-5% revenue growth medium-term excluding divestitures.
The announcement of job cuts could be seen as a cost-saving measure, potentially improving profitability in the long term, but it may also raise concerns about the bank's current operational efficiency and future growth. The return to pre-pandemic loss rates indicates a normalization of credit loss provisions, which could be a negative signal if driven by lower credit quality customers. However, the projected revenue growth is a positive outlook that may balance the short-term impact on the stock.
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