Citi Profits Drop in Q1 as Reorganization Costs Mount, But Core Banking Units Show Strength

• Citi's first quarter profit dropped to $3.4 billion, down from $4.6 billion a year earlier, as expenses rose for employee severance and deposit insurance • Revenue fell 2% to $21.1 billion, but was higher excluding one-time items; 2024 revenue forecast is $80-81 billion • Bank spent more on laid-off employees and set aside money to replenish FDIC fund • Performance strong in services/banking units, but markets division struggled with trading revenue falling 7% • Undergoing reorganization to simplify structure and boost performance, but still faces regulatory issues and workforce uncertainty