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Citi to take $300 million 'repositioning charge' in fourth quarter

Published 09/12/2015, 17:19
Updated 09/12/2015, 17:30
© Reuters. A green traffic light is pictured in front of a sign board of Citibank in Hanoi
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(Reuters) - Citigroup Inc (N:C) will take a $300 million (£197.8 million) "repositioning charge" in the fourth quarter, Chief Financial Officer John Gerspach said on Wednesday.

The charge will be taken to "resize infrastructure and capacity" throughout Citi's businesses, Gerspach said at the Goldman Sachs (N:GS) U.S. financial services conference.

Citi will also add $300-400 million in loan reserves from the third quarter for energy loans, based on the expectation that oil prices will remain low, he said.

Depressed oil prices have put several U.S. banks under pressure due to their exposure to loans to oil companies.

Citi is due to report fourth-quarter earnings on Jan. 15.

© Reuters. A green traffic light is pictured in front of a sign board of Citibank in Hanoi

Gerspach declined to comment when asked about investment banking bonuses, saying Citi would "pay competitively."

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