Citigroup CFO Projects Over 11% Equity Return and Boosted Buybacks This Year
Citigroup's Financial Outlook and Strategic Initiatives
Projected Return on Tangible Common Equity (ROTCE)
NEW YORK, Sept 14 (Reuters) - Citigroup Chief Financial Officer Gonzalo Luchetti said on Monday the bank expects its return on tangible common equity, known as ROTCE, to be slightly above 11% this year.
Stock Buybacks and Investment Acceleration
Increased Buyback Volume
The bank will also increase the volume of stock buybacks from the $13 billion it acquired in 2025, Luchetti added at a conference in New York.
Accelerated Investments
The bank expects to accelerate around $500 million in investments through the end of the year, including increasing severance to reduce headcount in some areas and other investments to support growth, such as marketing for credit cards and wealth management.
Banamex Divestiture and Financial Impact
Removal from Citi's Balance Sheet
The CFO expects the bank to remove Mexico's Banamex from Citi's balance sheet next year, with a currency translation adjustment loss of $9 billion.
Growth Strategy and Acquisition Plans
Focus on Organic Growth
Citi is focused on organic growth, the CFO said, but could still buy small companies with services that would be "add-ons" to current businesses.
Approach to Acquisitions
"But we will not do anything transformative," Luchetti said.
(Reporting by Tatiana Bautzer and Arasu Kannagi Basil; Editing by Cynthia Osterman)
