Citigroup needs a new strategy for its lagging Asian consumer banks
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Last Updated: Mar 08, 2021, 09:06 AM IST
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Covid-19 hit Citi with $17.5 billion in credit losses and allowances, two-thirds of which were in global consumer banking. A $900 million payment erroneously sent to Revlon Inc.’s lenders shaved off 0.3 percentage point from last year’s 6.9% overall return on tangible common equity, leaving it woefully short of the 14% return at JPMorgan Chase & Co.
AP
Citigroup Inc.’s new Chief Executive Jane Fraser is facing an Asia question handed down to her from predecessor Mike Corbat’s time: What to do about the consumer banks?
Citigroup needs a new strategy for its lagging Asian consumer banks
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-0.12%
To date, $389.8 million had been repaid to the bank at its request, but some lenders have held on to the funds leading the bank to wage a legal battle against a group of hedge funds to recover the remainder.
This month, U.S. District Judge Jesse Furman in Manhattan said the transfers were complete transactions not subject to revocation and declined to force the defendants to return the funds. Citigroup is planning to fight the decision. I do believe that we have good grounds for an appeal, and we re going to pursue that, Chief Financial Officer Mark Mason said an industry conference on Thursday.
Citigroup revises earnings lower after losing Revlon case Toggle share menu
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Citigroup revises earnings lower after losing Revlon case
FILE PHOTO: The Citigroup Inc (Citi) logo is seen at the SIBOS banking and financial conference in Toronto, Ontario, Canada October 19, 2017. REUTERS/Chris Helgren
27 Feb 2021 06:45AM (Updated:
27 Feb 2021 06:56AM) Share this content
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REUTERS: Citigroup said on Friday (Feb 26) it recorded an additional US$390 million in operating expenses in the 2020 fourth quarter after a US federal judge ruled it was not entitled to recoup money it mistakenly wired to lenders of Revlon Inc last year.
As a result, Citigroup revised its fourth-quarter earnings to US$1.92 per share down from US$2.08, according to a filing.