(AOF) – The American bank Citigroup revealed falling profits in the first quarter due to the costs of its restructuring. Net income fell 27% to $3.37 billion, or $1.58 per share. Citi recorded in its accounts a charge of $251 million, which is intended to participate in the bailout of the American agency guaranteeing bank deposits in the United States. The FDIC had to intervene after the bankruptcy of several regional banks in 2023.
The bank’s operating expenses increased by 7% to $14.195 billion, including $225 million in restructuring charges. At the same time, revenue fell 2% to $21.10 billion.
“Last month marked the end of the organizational simplification we announced in September. The result is a more efficient and simpler management structure that fully aligns with and facilitates our strategy. It will also help us implement “works our transformation” commented Executive Director, Jane Fraser.
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Despite the turbulence, fintechs stay the course
According to BCG, in mid-2021, all listed fintechs in the world were valued on average twenty times their revenues, or a valuation of around $1.3 trillion. This figure had multiplied by more than four in three years. At the end of 2022, this multiple was divided by five, with average valuations limited to four times revenue. Nevertheless, BCG considers that the sector should record a jump in growth by 2030, with a six-fold increase in revenues for fintechs. After payments, development should mainly come from fintech banking, with the rise of turnkey services for businesses and professionals (“banking-as-a-service”).