Citigroup boosts risk and control investment after operational error worth $900 Million
Citigroup Inc.’s (C.N) Chief Financial Officer Mark Mason stated on Monday that the bank was accelerating investments in its risk and control functions after a high-profile operational error worth $900 Million.
He added that the bank prepared incremental investments this year worth $1 billion to shore up Citigroup’s infrastructure and improve risk management and compliance.
The American multinational investment bank and financial services corporation stated that it would continue adding reserves for loan losses for the third quarter due to a weaker economic outlook amid the coronavirus pandemic.
Citigroup said that it expects its quarterly revenue to decline due to lower interest rates and a slowdown in investment banking and consumer activity.
“Our financial performance improved steadily and significantly during the eight years before COVID, as we kept our commitment to increase our return on and of capital to our shareholders. From 2012 to 2019, Citi’s net income increased from $7 billion to nearly $20 billion, and our Return on Tangible Common Equity increased from 5% to over 12%, closing the gap with our peers. We went from returning hardly any capital to returning nearly $80 billion in capital to our shareholders over the last six years,” Citigroup’s Chief Executive Officer Michael Corbat said.