Citigroup’s (C) performance in Q4 2023 was disappointing and alarming, as the bank reported its worst quarterly loss in 15 years and announced plans to cut 20,000 jobs over the next two years. The bank’s earnings were hit by a litany of charges, totaling $4.66 billion, related to its overseas risks, last year’s regional banking crisis, and its ongoing corporate overhaul. The bank also missed revenue expectations, as its core businesses of consumer banking and institutional clients group suffered from lower interest rates, higher expenses, and increased competition.

• The bank’s results contrasted sharply with those of its peers, who posted strong profits and revenue growth in Q4, benefiting from the recovery of the economy and the financial markets. Citigroup’s share price also lagged behind its rivals, as investors questioned the bank’s strategy and execution under its new CEO Jane Fraser, who took over in February 2023.
• While Fraser has vowed to transform the bank and improve its efficiency, profitability, and culture, her ambitious plans will take time and money to implement, and may face resistance from regulators, employees, and customers.
• The bank faces significant challenges, such as addressing its regulatory issues, streamlining its global operations, investing in technology and innovation, and enhancing its risk management and governance. The bank also needs to cope with the uncertain and volatile environment, as the pandemic, inflation, and geopolitical tensions pose risks to its outlook.

In summary, Citigroup’s Q4 performance was a setback for the bank and its stakeholders, and raised doubts about its ability to compete and thrive in the changing and competitive landscape of the banking industry. The bank needs to demonstrate that it can execute its transformation effectively and deliver sustainable and profitable growth in the future.