Citigroup expected to write down $100M on Russian FICC exposure - IFR
Mar. 04, 2022 12:57 PM ETCitigroup Inc. (C), JPM, GSSCGLFBy: Liz Kiesche, SA News Editor16 Comments
- Citigroup (C -2.5%) tops the list of global investment banks with the biggest exposure to Russia in emerging market fixed-income and currencies trading at $100M, reports International Financing Review.
- Goldman Sachs (GS -1.8%) and Societe Generale (OTCPK:SCGLF -5.6%) each lost ~$50M and JPMorgan Chase (JPM -3.0%) lost ~$30M, IFR said, citing sources familiar with the matter.
- The executives pointed out that assets remain extremely volatile with mark-to-market positions changing on a daily basis. The banks' desks trade a range of products tied to local market interest rates, credit, and currencies.
- Russia-related losses, though, are expected to increase in coming months due to the highly uncertain geopolitical outlook and the complexity in unwinding Russian exposure after a slew of sanctions were imposed on many Russian entities.
- And while the Citi (NYSE:C) writedown is expected to be ~$100M, the losses are small considering large banks' global markets operations generate billions of dollars in quarterly revenue.
- On Monday, Citigroup (C) disclosed $5.4B in exposure to Russia.