Citigroup is cutting hundreds of jobs across the company, including its investment banking division.
The cuts amount to less than 1 percent of Citigroup's 240,000-strong workforce, according to people familiar with the matter who asked not to be named as Bloomberg reports. Those affected also include employees in the company's operations and technology organization and mortgage underwriting division in the United States.
Citigroup, one of the largest banks in the United States, posted net income for the fourth quarter 2022 of $2.5 billion, or $1.16 per share.
The bank posted revenues of $18 billion above Refinitiv expectations of $17.9 billion.
The bank set aside more money for loan losses in the future, increasing provisions by 35 percent from the previous quarter to $1.85 billion. Included $640 million for unfunded commitments due to loan growth in private banking.
"The markets division had the best fourth quarter in recent history, driven by a 31 percent increase in fixed income, while Banking and Wealth Management were impacted by the same market conditions they faced throughout the year," commented CEO Jane Fraser.
Citigroup CEO Jane Fraser's turnaround efforts hit a snag amid concerns about a global economic slowdown as central banks around the world battle inflation.
Like the rest of the industry, Citigroup is facing a sharp decline in investment banking revenues, partly offset by an expected increase in trading results in the quarter.
The drop in net income the bank saw in the fourth quarter was largely due to loan growth in its private bank along with expectations for a weaker macroeconomic environment ahead. The weakness was partially offset by higher revenues and lower expenses.