Citi to take $300m 'repositioning' charge

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Citigroup will take a $300 million repositioning charge' in the fourth quarter to 'resize infrastructure and capacity' throughout its businesses, Chief Financial Officer John Gerspach said on Wednesday.

Reuters reports that Citi will also add $300 million to $400 million in loan reserves from the third quarter for energy loans, based on the expectation that oil prices will remain low, Gerspach told the Goldman Sachs U.S. financial services conference.

In the meantime, Bloomberg News reports that Citigroup expects revenue from its markets business, which includes equity and fixed-income trading, to drop 15% to 20% in the last three months of 2015 compared with the third quarter.

The bank is also likely to fall short of its 10% goal for return on tangible common equity this year, Gerspach also said Wednesday.

Citigroup to take $300 million 'repositioning charge' in fourth quarter

Citigroup Sees Equity, Fixed-Income Revenue Down as Much as 20%

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