Citigroup to ‘recalibrate’ investment banking headcount

BLOOMBERG

Citigroup Inc Chief Financial Officer Mark Mason said his firm will adjust headcount in its investment banking division as necessary as it continues to look for ways to boost profits.
For years, Citigroup has been beefing up its investment bank, including through hires in sectors like energy, biotechnology and healthcare, Mason said in an interview with Bloomberg Television.
Still, the recent drought in deals has forced the firm to consider changing the pace of some of those investments, he said.
“What the environment we’re managing through does suggest is that we may have to re-pace in certain areas across the franchise in light of things slowing down and we’ll do just that,” Mason said in response to a question about headcount in the investment bank. “We’ll recalibrate as needed.”
Mason told investors at an investor conference hosted by RBC Capital Markets that his firm was beginning to
see “green shoots” in investment-grade debt markets. Still, he said revenue from the investment banking division is likely to drop in line with industrywide revenue, which is already down about 40% so far this quarter.
Citigroup Chief Executive Officer Jane Fraser has sought to improve profitability by focusing on businesses like treasury services and wealth management, which offer steadier revenue and higher
returns than volatile operations like investment banking and trading.
Mason reiterated that the company over the medium term is still hoping to lower its efficiency ratio — a measure of how much it costs to produce a dollar of revenue — below 60%.