Citigroup Inc., the third-largest U.S. bank, cut bonuses in its investment-banking division by about 10 percent to 20 percent globally after a revenue slump, according to people with knowledge of the matter.
Bonuses in the Asian and European divisions were down about 20 percent on average and the U.S., its largest market, saw cuts of about 10 percent, one person said, declining to be named as the details aren’t public. Staff were informed of their bonus numbers yesterday, two people said.
Bankers up to the vice-president level were paid unchanged or higher bonuses while senior bankers saw their bonus pools drop, one person said, asking not to be named because the details aren’t public. Top performers were likely to be spared bonus cuts, people familiar with the matter said in November.
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Equities trading bonuses at the bank were down by about 10 percent and bonuses for the fixed income division ranged from 10 percent higher to 10 percent lower, one person said.
Revenue slumped 11 percent to $6.42 billion in 2012 at Citigroup’s European securities and banking division, which also includes operations in the Middle East and Africa, the company said yesterday. Profit from continuing operations at the unit, which includes investment banking and trading, tumbled 32 percent to $1.35 billion.
The division’s Asian unit posted revenue of $4.2 billion for the year, down 2 percent on 2011. Profit from continuing operations fell 8 percent to $822 million. Jamie Forese, who was appointed Citigroup co-president earlier this month, oversees the securities and banking division.
Revenue at the North American division fell more than any other location, tumbling 19 percent to $6.14 billion for the year, according to a financial supplement. Profit fell 3 percent to $1.01 billion.
Danielle Romero-Apsilos, a spokeswoman for New York-based Citigroup, declined to comment.
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