KEY TAKEAWAYS
- Citigroup shares fell after it reported higher fourth-quarter charges than previously anticipated linked to its exposure to Argentina and Russia, as well as its restructuring.
- Citi said it set aside $1.3 billion in reserves to cover its exposure to Argentina and Russia.
- The FDIC’s special assessment led to expenses of $1.7 billion.
- Citi is due to release its fourth-quarter results Friday morning.
Citigroup (C) shares fell more than 2% in early trading Thursday after it reported higher fourth-quarter charges than it previously disclosed linked to its exposure to Argentina and Russia, as well as its own overhaul.
Citi, which reports its fourth-quarter results Friday morning, said in a regulatory filing Wednesday that it had set aside a total of $1.3 billion in reserves for the fourth quarter tied to currency exposures in Argentina and Russia’s ongoing political and economic instability. It also announced $780 million of charges related to CEO Jane Fraser’s restructuring of the bank.
The New York bank lender said it expects to take a $1.7 billion charge to help refill the Federal Deposit Insurance Corporation’s (FDIC’s) deposit insurance fund. The FDIC imposed special fees to replenish the fund after the collapse of Silicon Valley Bank and Signature Bank.
CFO Mark Mason said in a post on the Citi’s website that the bank remains on track to meet its medium-term targets.
Citi shares were down 2.7% at $51.60 per share as of about 11 :45 a.m. ET Thursday following the news. They have gained around 6% over the past year.