Citigroup posts $1.8 billion fourth-quarter loss after litany of charges (2024)

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Citigroup posts $1.8 billion fourth-quarter loss after litany of charges? ›

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. The charges hit quarterly earnings by $4.66 billion, or $2 per share, Citigroup said.

Citigroup reported fourth-quarter revenue of $17.4 billion, a 3% decrease compared to the year-ago quarter. The bank reported a loss per share of $1.16, and a net loss of $1.8 billion. Key metric to watch: Operating expenses increased on account of additional charges.

"Citigroup's earnings looked awful with a big loss of $1.8 billion, but the bank's underlying business showed resilience. The loss was largely due to exceptional items, as well as a big increase in reserves for credit losses," said Octavio Marenzi, CEO, management consultancy firm Opimas LLC.

Citigroup is defending itself against a separate lawsuit that alleges workplace harassment in New York. Ardith Lindsey, a managing director, has accused Citi of downplaying her complaints about a senior equities banker who she said subjected her to years of abuse including sexual advances and death threats.

Part of the reason for this lackluster performance is that the bank has produced disappointing results. Citigroup's recently-reported fourth-quarter results followed this trend, as the bank posted a $1.8 billion loss, which arose from a smorgasbord of charges related to overseas risks.

Citigroup is planning to lay off 20,000 employees, or about 10% of its workforce, in the next two years as it comes off its worst quarterly financial results in more than a decade.

made a splash by buying $3 billion in shares of Citigroup (NYSE: C). At the time, Citigroup was experiencing seismic change under new CEO Jane Fraser. The stock's valuation was hovering well below its peers, still hobbled by a poor reputation and memories of its 2008 government bailout.

Today, Citigroup's largest shareholders are Vanguard, BlackRock (NYSE:BRK), State Street Corporation (SST -5.46%), Berkshire Hathaway (BRK. A 0.58%)(BRK. B 0.61%), and Geode Capital Management.

Citi is still under regulatory scrutiny. The firm's results from the first quarter, released on April 12th, were mediocre; its share price slipped. Just because investors can now see how poorly wealth management and banking are performing does not mean those businesses will improve. And talent is expensive.

How much does Citigroup CEO make? ›

Citigroup raises CEO Jane Fraser's 2023 pay by 6% to $26 million.

Companies Considered Too Big to Fail

Citigroup Inc. The Goldman Sachs Group Inc. JPMorgan Chase & Co. State Street Corp.

Slowing loan growth, rising interest rates, and inflation are among the causes of Citigroup's groups losses. Citi executives expect big credit losses, CNBC reports. They set $1.85 billion aside to cover credit losses in the fourth quarter of 2023.

Fitch Ratings - New York - 15 Sep 2023: Fitch Ratings has affirmed Citigroup, Inc.'s (Citi) Long- and Short-Term Issuer Default Ratings (IDR) at 'A' and 'F1', respectively, and Citi's Viability Rating (VR) at 'a'. The Rating Outlook is Stable.

The stock fell sharply as many banks did, but Citi shares never bounced back. Missed financial targets and regulatory scrutiny for weak risk management under Fraser's predecessor, former CEO Michael Corbat, didn't help.

FMC Corporation (NYSE: FMC) today reported fourth quarter 2023 revenue of $1.15 billion, a decrease of 29 percent versus fourth quarter 2022, driven by continued channel destocking in all regions with adverse weather in Brazil being a further headwind in Latin America.

In the first quarter, we reported net income of approximately $3.4 billion, EPS of $1.58, and an RoTCE of 7.6% on $21.1 billion of revenue. Total revenues were down 2% on a reported basis.

JPMorgan reported fourth-quarter revenue of $39.9 billion, a 12% increase compared to the year-ago quarter. The bank reported earnings per share of $3.04, on a net income of $9.3 billion that got hit by an FDIC special assessment.

Adjusted operating income for the fourth quarter was $5.1 million, with adjusted EBITDA of $10 million, and adjusted earnings per share of $0.53. Turning to the full year. Fiscal 2023 was challenging both for Citi Trends and for the customers we serve.