Why – Shockingly – You Wish You Were Working at Citi
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.
You know there’s no point in making dinner plans because they’ve already ordered Seamless to their desk. Just one of twenty signs you are dating a banker.
London authorities have charged two former employees of interdealer broker R.P. Martin with criminal charges stemming from their alleged involvement in Libor rate manipulation.
Jurors have been chosen in the government’s fraud case against former Goldman Sachs trader Fabrice P. Tourre. If the case centers heavily on character, the trial will get complicated.
There are just too many banks playing in the debt capital markets space. Layoffs are sure to ensue.
Alfred Feld has been working at Goldman Sachs for 80 years. He was nearly fired on his first day on the job.
Nearly 3,200 European finance-sector workers earned more than $1.3 million in 2011. Most resided in London.
The first thing I’ve learned is that bankers really do work incredible hours. In fact, so much so that I consider myself fortunate to have had most of my weekend free.
“Sources within UBS acknowledge that the investment bank’s glory days are over; the division is now considered second-class.”
Buzz Around the Office
Ever wonder why Major League Baseball is the least progressive of the four major sports? Its commissioner, Bud Selig, has never sent an email in his entire life, nor does he plan to.
List of the Day: Ageism
Ageism exists. If you’re fearful of appearing too old for the job, do this.
- Embrace social media tools.
- Focus on your most recently developed skills.
- Don’t admit to never sending an email in your life.