Why – Shockingly – You Wish You Were Working at Citi

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The lonely few who continued to argue against Citigroup’s decision to dump former Chief Executive Vikram Pandit for Michael Corbat have surely been silenced. The once-floundering U.S. bank is recovering at an astounding pace under Corbat, booking a 42% jump in quarterly profit during its best half-year since the financial crisis.

As an employee of Citigroup, the recovery is likely bittersweet. After all, Citi turned itself around, in part, by cutting expenses – firing people and scrapping full business lines. The good news is the bank appears close to completing its 11,000 job cuts. Citi employed 253,000 people as of June 30, or around 7,600 fewer workers than a year ago. The chances are good the remaining cuts will come from the emerging markets, where Citi acknowledged on Monday that it continues to struggle.

Another big plus for Citi employees is that the bank is in an enviable position when it comes to its capital ratio, which increased to roughly 10% of its risk-weighted assets, besting J.P. Morgan and other big, healthy banks. Then there is its leverage ratio, which sits at 4.9%, just below the expected 5% requirement for 2018, according to Reuters. Bigger capital buffers give executives less reason to make additional staffing and compensation cuts.

Oh, and Citi shares are up 95% over the last year, making it the best performing bank in the U.S. over the past 12 months. And unlike other banks, Citi didn’t sacrifice revenue to book profits. Excluding an accounting adjustment, revenue climbed 8% to $20 billion.

The only downside is that Citi relied heavily on its securities and banking unit during Q2. Bond trading revenue was up 18%; stock trading revenue increased 68%; and underwriting and advisory was up 21%. With the market bracing for the end of quantitative easing, those numbers will be difficult to repeat in coming quarters.

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