Banks will probably generate more reliable profits, though not at the high levels preceding 2008’s crisis, as firms adapt to new rules and pressure to cut risk, Citigroup Inc. Chief Executive Officer Michael Corbat said.
'Investors’ expectations on Tuesday should be lower volatility of earnings and steadier returns, albeit probably at lower levels than we’ve seen in history,' Corbat said Monday at an event at the New York University Stern School of Business.
The Dodd-Frank Act, which sought to overhaul U.S. regulation of the industry after the financial crisis, has reduced the chance that a large bank will fail or need taxpayer support, he said.
Bloomberg reports that Citigroup sold off businesses and soured holdings after drawing the most taxpayer support of any bank in the nation during the crisis, assistance that it later repaid. Since taking over as CEO in October 2012, Corbat, 54, has cut jobs and pulled back from some consumer-banking markets to narrow the firm’s focus to businesses with higher growth potential.
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