From CNBC:

Citigroup warns investors of higher-than-expected charges related to the decline of the Argentine peso and restructuring costs just weeks before the release of its fourth-quarter results. The bank reports $880 million in currency conversion losses and $780 million in restructuring charges, significantly exceeding the guidance given by the CFO in December.

Citigroup also reveals a need to build reserves by $1.3 billion due to its exposure to Argentina and Russia, as well as a $1.7 billion expense for a special FDIC assessment related to the 2023 regional bank failures. These charges are anticipated to lead to a $1 per share loss in the fourth quarter, causing shares of the bank to dip about 1% in after-hours trading on Wednesday.

The increased charges come at a critical time for CEO Jane Fraser, who is in the middle of restructuring efforts aimed at making the bank leaner and more profitable. Citigroup, which has been plagued by high expenses and eroding credibility after its predecessors failed to meet targets, is currently the lowest-valued among the six biggest U.S. banks.

Despite skepticism, veteran banking analyst Mike Mayo recommends Citigroup stock, as he believes it is undervalued and has the potential to double within three years. The bank’s CFO, Mark Mason, maintains that the additional charges do not alter the company’s strategy and that they remain on track to meet 2023 expense guidance and medium-term targets.

Citigroup declined to comment on its changing guidance, referring to remarks from Mason published late Wednesday. The bank asserts that it remains on track to meet its financial goals, despite the unexpected charges mentioned.



Read more: Citigroup at risk of quarterly loss after disclosing charges