Citigroup’s private bank will not be hit by the parent firm’s announcement that it is to cut more than 11,000 positions as it targets $900 million of expense savings that it expects to benefit results for next year.
The US banking giant today unveiled “a series of repositioning actions that will further reduce expenses and improve efficiency across the company”.
Asked by this publication about the cuts, a spokesperson said there will be no impact on the private bank.
As a result of the cuts, Citi said it expects to log pre-tax charges of around $1 billion in the fourth quarter of 2012 and around $100 million of related charges in the first half of next year. The bank also expects the actions to have a negative impact on annual revenues of less than $300 million.
The cuts will affect the institutional clients group, its global consumer banking segment, Citi Holdings, corporate/other; operations and technology, and global functions.
In the third quarter, Citi said private banking revenues increased by 8 per cent to $590 million from the prior year period, driven primarily by North America lending and deposits.