Citi CFO says expenses will grow on Q2 as consequence of 1,600 headcount reduction
2023.06.14 17:08
© Reuters. FILE PHOTO: The Citigroup Inc (Citi) in Toronto, Ontario, Canada October 19, 2017. Picture taken October 19, 2017. REUTERS/Chris Helgren/File Photo
NEW YORK (Reuters) -Citigroup Inc in the second quarter will book severance costs associated with around 1,600 job cuts, Chief Financial Officer Mark Mason said on Wednesday.
Speaking at a conference in New York, Mason said the bank’s expenses in the second quarter will be $300 million to $400 million higher than the first quarter, “largely attributed to those restructuring or repositioning charges that I had to incur.”
Since the start of the year, the bank has incurred costs related to a 5,000 headcount reduction taking place this year across the firm, largely in banking, markets and functions.
Mason also warned investors about a fall in revenues in investment banking and trading.
He said markets revenues fell 20% so far this quarter compared to a year earlier.
On investment banking, he expects revenues to be down 25% year over year. “It’s been tough to call exactly when the wallet will rebound”, Mason said, adding there have been “green shoots” in debt capital markets activity.
Goldman Sachs Group Inc (NYSE:) expects trading revenue may slump 25% this quarter, the bank’s president said last week.
