Citigroup posts steady profit as it plans shake-up

Citigroup's profit was broadly steady and beat third-quarter estimates as it benefited from a surge in trading revenue and investment banking fees. 

The bank said it will cut management layers from 13 to eight as part of a sweeping re-organisation. In the two top layers of management, 15% of functional roles were reduced, Citi said in a presentation. 

The banking giant employs almost 3,000 people in Ireland. Citi's net income rose 2% to $3.5bn (€3.3bn), sending the shares 3% higher at one stage. 

Revenue at Citi's institutional clients group that houses its Wall Street operations rose 12% from a year ago, fuelled by a 34% jump in investment banking fees. Finance head Mark Mason said that US consumers remain resilient amid broader uncertainty, while the bank still accounted for a potential mild US recession in the beginning of the first half of next year.

"If you look back in history, it shows that the ability to tame inflation really does require labour market loosening, resulting in higher unemployment and a recession. But...the US keeps surprising us with its resilience," Mr Mason said.

The third-largest US lender set aside more money to cover potential bad loans, even though delinquency levels were still low compared to historical levels. 

"We announced consequential changes that align our organisational structure with our strategy and changes how we run the bank," chief executive CEO Jane Fraser said. Ms Fraser announced a sweeping re-organisation last month. 

Reuters. Additional reporting Irish Examiner