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The largest international corporation, which is one of the world leaders in the field of financial services. The company was formed on April 7, 1998 by the merger of Citicorp and Travelers Group.
Performance indicators
2023: Weak performance versus competitors and $1.8 billion loss in Q4
Citi reported a $ 1.8 billion fourth-quarter loss after a one-time expense of $ 4 billion. With its biggest restructuring in two decades, the bank plans to cut 20,000 jobs in the "medium term" after its worst quarter in 15 years.
Business in Russia
2022
The appointment of Grant Carson as the new manager of Citigroup's business in Russia
At the end of September 2022, it became known about the appointment of Grant Carson as the new manager of Citigroup's business in Russia. According to Bloomberg, the Russian Federation will still be part of Citigroup's emerging markets division in the EMEA region under the leadership of Ebru Pakkan. Chief Executive Officer in Russia Maria Ivanova will report to Carson. Read more here.
Plan to curtail business in Russia
In August 2022, Citigroup officially announced a phased curtailment of activities in Russia. Citi will spend $170 million to leave the country. The decision was made against the backdrop of sanctions imposed by the United States and its allies against Russia amid the conflict in Ukraine.
History
2023: Mass layoffs due to US crisis
In mid-November 2023 American , the financial conglomerate Citigroup began a comprehensive reorganization, during which mass layoffs of employees are planned. The company is forced to take these measures due to the difficult macroeconomic situation, the crisis USA in and the high level. inflations
Citigroup CEO Jane Fraser is the initiator of corporate reform. In the first stage of the reduction, management will be affected, including managing directors. By February 2024, layoffs among ordinary employees will begin. As of November 2023, Citigroup does not disclose the exact number of workers to be laid off. According to some reports, the number of personnel will decrease by about 10%. Individual specialists who fall under the reduction will be offered other positions within the company. The rest will receive severance pay and other due payments.
As part of the reorganization, Citigroup will form a structure with five divisions, whose leaders will report directly to Fraser. These departments include: private banking services, asset management, investment and commercial banking services, trade and institutional services. Citigroup's former structure of two consumer-serving units and large institutional clients led to a strained relationship between managers and a lack of accountability, it said. During the restructuring, some senior executives were fired.
 | These changes eliminate unnecessary complexity throughout the bank and increase responsibility for customer service. We say goodbye to some very talented and hardworking colleagues who have made important contributions to our company, "Fraser said.[1] |  |
2022
Citigroup cuts 2.3 thousand employees
In August 2022, it became known that Citigroup is cutting 2.3 thousand employees.
Fine from Brazil over exchange rate manipulation
On June 22, 2022, Brazil's antimonopoly authority said it would fine Brazilian units Citibank and Societe Generale for manipulating exchange rates. Citibank pledged to pay $13.78 million, and Societe will pay $1.07 million in fines, the department said. Read more here.
Sales of units in Indonesia, Malaysia, Thailand, Vietnam for $3.6 billion
In early January 2022, Citigroup announced that it was selling its personal services business in Indonesia, Malaysia, Thailand and Vietnam to Singapore's United Overseas Bank (UOB) for $3.6 billion. It is expected that the transaction will be completed between mid-2022 and early 2024, depending on the progress and results of regulatory approval.
As part of the agreement, United Overseas Bank will acquire the unsecured and secured loan portfolios of Citigroup, the wealth and retail deposit management arm that make up its consumer banking business in Indonesia, Malaysia, Thailand, and Vietnam. The total net worth of Citigroup's consumer business was about $2.97 billion, and the customer base as of June 30, 2021 totaled about 2.4 million people. UOB, which has a significant presence in Southeast Asia, will pay Citigroup for the net assets of the acquired enterprises, as well as a premium of $690 million.
| | The sale of these four consumer markets, along with previously announced deals, demonstrates our sense of urgency in implementing our strategic renewal. As a result of the transaction, about $1.2 billion will be released from the distributed tangible total capital and an increase in tangible total capital by more than 200 million, said Citigroup CFO Mark Mason. | |
After the deal closes, UOB is expected to move about 5,000 Citigroup consumer service and support staff across four markets. Citigroup will also retain control of its institutional units in Indonesia, Malaysia, Thailand and Vietnam. In 2021, Citigroup's CEO said Jane Fraser the bank would exit retail operations in 13 countries outside USA to boost returns. Many of these markets are in the Asia-Pacific region, including,,, and Australia China India Indonesia.[2]
Mandatory vaccination of employees against COVID-19
In January 2022, Citigroup warned employees in the United States that those who do not get vaccinated against COVID-19 by January 14 would be placed on unpaid leave and fired at the end of the month.
The vaccination requirement will not apply to those who have not made it for medical or religious reasons. The situation of each such employee will be considered individually. Citigroup management said that more than 90% of staff have already been vaccinated and their number continues to grow. For employees of foreign branches of the bank, other deadlines will be set, in which it will be necessary to undergo vaccination.
2021
Launch of the company in conjunction with Nasdaq to trade shares of companies prior to their IPO
On July 21, 2021, it became known that the Nasdaq exchange entered into an agreement with major American banks, including Goldman Sachs and Morgan Stanley, to develop its platform allowing people to trade shares in private companies that enjoy great interest from investors seeking to make high returns on investments. Read more here.
Creation of a cryptocurrency department
At the end of June 2021, the financial giant Citigroup officially launched a new business unit focused on digital assets and blockchain, according to The Block. Read more here.
2020
Citigroup fined $400 million by US regulators for violations of risk management system
Citigroup Inc. was fined $400 million in October 2020 by US banking regulators, who demanded that the financial institution eliminate violations in the Citigroup risk management system[3].
The US Federal Reserve (FRS) noted that Citigroup's practices did not meet the requirements "in various areas of risk management and internal control," including in the segments of data management and publication of regulatory reporting, as well as capital planning. "
Meanwhile, the Office of the Comptroller of Cash Circulation (OCC) said the bank had been punished for "years of failure" to fix problems in the risk management system. Citigroup "failed to create effective risk management and data management programs," the OCC said.
According to the OCC decision, the bank will not be able to buy even small assets, including non-financial companies or credit card portfolios, without the permission of the regulator. In addition, OCC will be able to change top managers and directors of Citigroup.
In the event that Citigroup does not eliminate the violations, the regulator can apply more decisive measures, including the removal of top managers.
The punishment that Citigroup was subjected to is much milder compared to the sanctions that another American bank, Wells Fargo, was subjected to after a scandal over manipulation of customer accounts in order to inflate the sales of banking products that erupted in 2016, writes The Wall Street Journal.
Jane Fraser's appointment as director
In mid-September 2020, it became known that Jane Fraser, president of the third largest American bank Citigroup, will replace Michael Corbat as CEO in February 2021. Fraser will be the first woman to lead such a major U.S. financial institution. Read more here.
2019
In the 20 most profitable companies in the world
Replacing traders with robots
In mid-March 2019, Citigroup disbanded teams working exclusively with corporate bonds in small deals known as the "incomplete lot." They were replaced by robots. Read more here.
2012: Why Citigroup is cutting 5 thousand IT professionals?
The Citigroup financial group is cutting 11,000 jobs, mainly in IT, as part of a plan to restructure the company's business. This was announced in early December 2012.
Ultimately, this plan provides for a reduction in the group's expenses in the amount of about $900 million, and the savings will be carried out both by cutting the staff and by "increasing standardization and increasing automation," its statement said. In addition to staff cuts, a number of activities will be withdrawn to regions with "lower wages."
Citigroup's total workforce was 266,000 at the end of 2011. Of the 11 thousand jobs that will fall under the reduction, half belong to the divisions of information technology, so that in total, about 5 thousand will lose their jobs. IT professionals.
Apparently, the company expects to actively use offshore and outsourcing schemes to support IT. For example, in 2008, Citigroup sold its IT division in India, Citi Technology Services, to the Indian service company Wipro for $127 million.
According to Phil Fersht, CEO of Horses for Sources, "Citi has the richest experience among global banks in offshore schemes and IT process approvals." "The decision to transfer its back-office activities to regions with more economical wages is logical, primarily India and the Philippines," he said.
2011: Assets
In 2011, the bank managed assets worth over $1.9 trillion.
Notes
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