London: HSBC will redouble cost-cutting efforts, including axing up to 14,000 more jobs, but Europe's largest bank was forced to soften a key performance target in the face of muted revenue. London-headquartered HSBC is seeking up to $3 billion in additional annual savings by 2016, on top of $4 billion already achieved, but sluggish growth outside Asia, particularly in Europe, means its target to get costs below 52 per cent of revenue has been eased.
The new goal is to keep the ratio near 55 per cent, the level it was at in 2010 - the year before Chief Executive Stuart Gulliver took over and kickstarted a radical retrenchment at a bank that was criticised in the past for "planting flags" around the world. "We're clearly hitting on the costs, but we're missing on the cost efficiency ratio because of revenue, which is hard for us to control," Gulliver told reporters.
"Top line growth is clearly a challenge."He added: "We need to have a cost-efficiency target that's realistic, so we're saying take a look at our peer group, they are all in the high 50s or low 60s, whether it's JPMorgan , Citi , Standard Chartered or Barclays .
"HSBC had a cost efficiency ratio of 63 per cent last year, which improved to 53 percent in the first quarter. Banks do not release comparable data, but last year JPMorgan's expenses were 67 per cent of revenue, at Citi it was 65 per cent, Barclays had
08:10 PM, May 15, 2013
New Delhi: Four people were arrested for using 57 fake credit cards to dupe a major bank of over Rs 40 lakh to support their lavish lifestyles, police said on Thursday. Mayank Jain, 28, Roshan Dass, 27, Kuldeep Srivastava, 23 and Ashok Ganwani,35 got the cards issued from Citibank on the basis of fake salary slips and identity cards of Air India. According to police, fathers of Jain and Das...
05:57 AM, May 03, 2013
Citigroup Inc is looking to pull out of consumer banking in more countries in an effort to lower costs and boost profits, according to two people familiar with the matter. In December, Citigroup said it was withdrawing from consumer banking in five countries - Pakistan, Paraguay, Romania, Turkey and Uruguay - as part of an expense reduction plan that will save $1.1 billion a year and eliminate 11,000 jobs. The...
11:22 AM, Jan 31, 2013
New York: Citigroup said it will pay $15.5 million to Vikram Pandit, its former chief executive who resigned from company last month, as well as to his top deputy. The bank said on Friday the payments to Pandit and former Chief Operating Officer John Havens reflect the progress the bank made in 2012 and work they did in some earlier years. The statement came less than a month after board...
08:27 AM, Nov 10, 2012
New Delhi: Global banking giant Citi has turned to the social media to gauge the public mood on offering banking transactions through Facebook - a service already being offered by Indian banking giant ICICI Bank. US-based Citigroup attracted the attention of hundreds of people within minutes of it posting messages on social networking platforms Twitter and Facebook last night about banking services on Facebook. "If you could do your banking...
01:42 PM, Jul 15, 2012
Mumbai: Global banking major Citigroup has struck the biggest property deal in recent years in the country by paying a hefty Rs 985 crore for six floors in the upcoming First International Financial Centre (FIFC) Tower at the coveted Bandra-Kurla Complex to house its headquarters. Two Citigroup entities - Citibank NA and Citigroup Global Markets - signed the deal to acquire 2,97,000 sq ft space which is six floors of...
07:37 AM, Apr 26, 2012
Washington: All but four of 19 major US banks got a green light on Tuesday from the Federal Reserve to boost their dividends and take other steps that will make their stocks more attractive to investors. The Fed declared them strong enough to survive a downturn worse than the Great Recession. The Fed's findings signaled its confidence that the financial system, which nearly collapsed 3 years ago, is healthy again....
08:26 AM, Mar 14, 2012
New York: Citigroup Chief Executive Vikram Pandit finally got his payday. The third biggest US bank company paid Pandit $14.86 million in 2011, compared with a salary of $1 and no bonus in 2010, according to a filing with the Securities and Exchange Committee. The 2011 payout included salary of $1.7 million and cash supplemented by a cash bonus of $5.3 million and options valued at $7.8 million. In 2009,...
09:16 AM, Mar 09, 2012
New York: A judge on Monday used unusually harsh language to strike down a $285 million settlement between Citigroup and the Securities and Exchange Commission over toxic mortgage securities, saying he couldn't tell whether the deal was fair and criticizing regulators for shielding the public from details of the firm's wrongdoing. US District Judge Jed Rakoff said the public has a right to know what happens in cases that touch...
08:16 AM, Nov 29, 2011
Kochi: Indian Institute of Management (IIM) Kozhikode on Tuesday said that over 100 firms, including Global Power house brands like Deutche bank, Citibank, softdrinks majors, MNCs and even a top tier IPL team, have made summer internship offers to 343 students of its flagship PGP programme. In the two year programme, after the first year, every student has to undertake 8-week internship in an organisation. This is the first time...
08:53 PM, Nov 08, 2011
Washington: As Citigroup announced a better-than-expected third-quarter profit of $ 3.8 billion, its Indian-American chief Executive Vikram Pandit emphasised the banking giant's position in emerging markets as a big growth driver. Though the gains largely came from credit value adjustment (CVA) that allows the bank to book gains from increases in credit spreads, the 74 per cent rise in revenue from a year ago gave it a return of $...
10:38 AM, Oct 18, 2011
Sydney: The President of Standard & Poor's, Deven Sharma, is stepping down, just a few weeks after the ratings firm issued a controversial downgrade of US government debt, the Financial Times reported. Citing people familiar with the matter, the FT said Sharma would be replaced by Douglas Peterson, chief operating officer of Citibank, the banking unit of Citigroup. The report said sources said Sharma's departure was unrelated to the downgrade...
08:28 AM, Aug 23, 2011
New Delhi: Enforcement Directorate will now interrogate Shivraj Puri, the mastermind of Rs 461 crore-fraud case at the Citibank branch in Gurgaon under the provisions of anti-money laundering laws. The Directorate will question the Citibank's Global Wealth Manager Puri, who was working at the branch of the bank and is said to have engineered the scam. Sources at the agency said the statements of Puri and few others associated with...
06:42 PM, Aug 02, 2011
Boston: Citigroup on Thursday said it has rewarded CEO Vikram Pandit with an over 16 million dollar 'retention award' for his 'outstanding job' of steering the financial giant to profitability and executing a strategy for sustainable growth. Pandit has been taking home a token one dollar salary from Citigroup since 2009. The three-part multi-year retention award will accrue to Pandit if the company meets certain performance goals, New York-based Citigroup...
09:49 AM, May 19, 2011
Gurgaon: Citibank has terminated services of 7 employees at its Gurgaon branch, where Rs 460 crore fraud was detected last year. "Following disciplinary procedures, services of a few employees of our Gurgaon branch have been terminated," a Citibank spokesperson said on Tuesday. These employees were reportedly under suspension ever since the fraud came to light. Police Commissioner (Gurgaon) S S Deswal said that seven Citibank employees have been terminated but...
10:53 PM, Mar 08, 2011
New York: Citigroup Inc Chief Executive Vikram Pandit got a $1,749,999 raise on Friday. Pandit pledged in 2009 to receive an annual salary of $1 until the struggling Citigroup returned to sustained profitability. On Friday afternoon, three days after the bank reported its first full year-profit since 2007, the board raised his salary to an annual base of $1.75 million. That amount pales in comparison to some of the compensation...
08:48 AM, Jan 22, 2011
Gurgaon: Shivraj Puri, the main accused in the estimated Rs 400 crore fraud at Citibank's Gurgaon branch, was remanded in 14 days' judicial custody by a local court on Friday. Chief Judicial Magistrate D N Bhardwaj ordered Puri to be taken into judicial remand for 14 days till January 28 at a hearing on Friday. Puri has been in police custody for the past 14 days in connection with the...
07:21 PM, Jan 14, 2011
Gurgaon: Shivraj Puri, the mastermind of the Rs 300 crore Citibank fraud, has implicated his father Raghuraj Puri in the case. Puri reportedly told the court that Rs 50 crore of the scam money was invested in his father's company. Police also told the Gurgaon court of Chief Judicial Magistrate DN Bhardwaj that Puri has said his father was an equal accomplice. Raghuraj Puri is a director in Norman Martin...
05:07 PM, Jan 12, 2011
Gurgaon: A local court on Wednesday extended police remand of Shivraj Puri, the main accused in the alleged Rs 400 crore Citibank fraud, by 2 more days till January 14 as police is yet to recover iPad considered to be vital evidence. The Chief Judicial Magistrate DN Bhardwaj remanded Puri in police custody for two more days after public prosecutor said that police needed more time to gather evidence and...
03:07 PM, Jan 12, 2011
Gurgaon: A local court on Saturday extended police remand of Hero Group's senior official Sanjay Gupta by seven days to January 15 in connection with the Rs 300 crore Citibank fraud case. Gupta, an Assistant Vice-President with Hero Group, allegedly invested about Rs 250 crore belonging to promoters of the Group and other companies through Shivraj Puri, the alleged master mind of the scam. Police had earlier arrested Gupta under...
03:49 PM, Jan 08, 2011
