Citigroup CFO Luchetti expects equity return above 11% this year
The group could still buy small companies with services that would be “add-ons” to current businesses, he said
Citi CFO Gonzalo Luchetti forecast on Monday that the bank anticipates its return on tangible common equity, or ROTCE, to exceed 11% this year. In addition, Citigroup plans to raise the volume of stock buybacks, from the previously announced US$13 billion in 2025. The bank also aims to invest around US$500 million by the end of the year, which includes reducing headcount in certain areas and investing in growth initiatives like marketing for credit cards and wealth management.
Luchetti expects Citi to eliminate Mexico's Banamex from the bank's balance sheet next year, which will result in a currency translation adjustment loss of US$9 billion. The CFO emphasized that Citi is focused on organic growth, but there remains potential for small acquisitions that would complement existing businesses, although no transformative deals are planned.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
