Citigroup warned that it risks losing $4bn due to its exposure to Russia given the ongoing Russia-Ukraine crisis. This comes after Citi earlier disclosed that it had $9.8bn in total exposure to the country as of December 2021, including its Russian retail bank which was put for sale last year. CFO Mark Mason said, “We’ve been managing…very proactively to bring that number down”, referring to an earlier comment that in a severe stress scenario, Citi could lose “a little less than half of that (total) exposure”. Separately, during an investor day presentation, Citi’s CEO Jane Fraser said that profitability will fall in the near term as expenses will rise to pay for the plan to execute a makeover for the company – expand in wealth management, focus on targeted investment-banking growth and investments in technology.
Citi’s bonds were stable with its 5.95% Perp at 104.25, yielding 4.5%.
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