Citi sees 35% of Q4 charges in Consumer Banking, 35% in Institutional group

theflyonthewall.com

Citi said it expects its repositioning activity and pre-tax charges of approximately $1B in Q4 to affect the following businesses and functions. Approximately 35% of the Q4 repositioning charges are expected to be incurred in Global Consumer Banking, resulting in a reduction of approximately 6,200 positions, of which approximately 40% are in the Operations & Technology functions that support the business. As a result of the repositioning actions, Citi expects to either sell or significantly scale back consumer operations in Pakistan, Paraguay, Romania, Turkey and Uruguay. Approximately 25% of the announced Q4 repositioning charges are expected in Securities & Banking with another 10% in Transaction Services. The repositioning actions are expected to result in a reduction of approximately 1,900 positions, of which more than half are in the Operations & Technology functions that support the business. The actions are designed to streamline its client coverage model in Banking and improve overall productivity in its Markets business, especially in areas experiencing continued low profitability such as cash equities, Citigroup said.

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