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Customers use ATMs at a Citibank branch in New York, on Oct. 11, 2020.NICK ZIEMINSKI/Reuters

Citigroup C-N will cut 20,000 jobs over the next two years, the bank said on Friday, after reporting a $1.8-billion quarterly loss driven by a string of one-off charges.

Shares of the bank – which has rolled out a multiyear effort to cut bureaucracy, increase profits and boost a stock that has lagged peers – fell more than 1 per cent.

“The fourth quarter was very clearly disappointing,” CEO Jane Fraser told analysts. “We know that 2024 is critical.”

The lender will reduce its global work force of 239,000 by 20,000 through 2026, including layoffs from the sweeping reorganization, Chief Financial Officer Mark Mason told reporters.

Citi also expects to no longer count 40,000 jobs when it spins off and lists its Mexican consumer unit Banamex in an eventual initial public offering. Given the head count reduction and separation of Banamex, it aims to reach a staffing level of 180,000 employees, Mason said.

Analysts said results from the third-largest U.S. lender by assets were strong when the one-off charges were excluded.

“Citigroup’s earnings looked awful with a big loss of $1.8-billion, but the bank’s underlying business showed resilience,” said Octavio Marenzi, CEO at management consultancy firm Opimas.

The loss was driven by $3.8-billion in charges disclosed in a filing on Wednesday that included reorganization expenses, a reserve related to currency devaluations and instability in Argentina and Russia and a $1.7-billion payment to replenish a government deposit insurance fund.

The bank expects to report between $700-million and $1-billion in charges this year related to severance costs and the reorganization.

“Whenever an industry or company goes through these types of reductions, it’s tough on morale,” Mason told reporters. The staffing cuts will not affect revenue growth, he said.

Rivals JPMorgan Chase JPM-N and Bank of America BAC-N on Friday reported lower quarterly profits, while Wells Fargo WFC-N outperformed on cost cuts.

Citi’s revenue fell 3 per cent to $17.4-billion in the quarter from a year earlier. It was the first time the bank broke out earnings for its five businesses – services, markets, banking, U.S. personal banking and wealth, which were previously housed under broader divisions.

Revenue from markets, or the trading division, dropped 19 per cent to $3.4-billion from a year earlier. It was dragged lower by a 25 per cent plunge in fixed income revenue from sluggish rates and currency markets, as well as losses from Argentina.

In contrast, banking revenue climbed 22 per cent to $949-million, led by higher investment banking fees for debt capital markets and advisory work that offset a slide in corporate lending.

In U.S. personal banking, revenue climbed 12 per cent to $4.9-billion, lifted by retail banking and credit cards.

But consumers have begun to show signs of stress, prompting Citi to set aside more money to cover losses on souring loans.

“The restructuring announced two months ago was a long time coming,” said Chris Marinac, director of research at Janney Montgomery Scott. “The question comes down to: Can they execute on this restructuring in terms of really being able to grow the core business? The jury is still out.”

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