The outlook for cost savings helped mask a disappointing fourth quarter, when Citigroup’s fixed-income traders turned in their worst performance in five years as the rates and currencies business was stung by a slump in client activity in the final weeks of the year. Revenue from the business slumped 25% to US$2.6 billion.
Citigroup Inc said it will eliminate 20,000 roles in a move that will save it as much as US$2.5 billion as part of CEO Jane Fraser’s quest to boost the Wall Street giant’s lagging returns.
Firmwide expenses are expected to drop to a range of US$51 billion to US$53 billion by the end of 2026, Citigroup said. In the meantime, though, the firm expects to incur as much as US$1 billion in expenses tied to severance payments and Fraser’s restructuring of the bank this year.
