Citigroup Reveals Billions Of Charges In Q4 Ahead Of Earnings

Citigroup Inc C disclosed several reserves and charges that will impact its fourth quarter of 2023 earnings.

In particular, the bank recorded $1.3 billion in reserves to cover risks outside the U.S., mainly currency exposure in Argentina ($720 million) and Russia ($580 million) owing to the prolonged political and economic instability. 

Also Read: Citi Reportedly Plans To Launch Wholly Owned China Unit Amid Economic Slowdown: Is The Risk Worth It?

Apart from this, Citigroup booked a translation loss of about $880 million in revenues in Argentina due to currency devaluation.

Also, the bank booked restructuring charges of $780 million, led by severance pay for employees and non-cash asset impairments related to its organizational and management simplification initiatives.

Moreover, Citigroup announced a charge of about $1.7 billion to its operating expense related to the Federal Deposit Insurance Corp fund special assessment.

The company will report Q4 earnings on January 12, 2024.

Related: Citigroup Likely To Report Lower Q4 Earnings; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call

Price Action: Citigroup shares are trading lower by 1.11% at $52.43 premarket on the last check Thursday.