Citigroup shares close lower on Friday, junior bankers’ base salaries to be raised, memo shows

According to a report by Reuters, citing a Citigroup Inc (C) internal memo, the bank intends to raise the base salaries of its junior investment bankers.

According to the memo, dated July 2nd, the pay raises for program vice-presidents, associates and analysts in Citi’s banking, capital markets and advisory division will take effect from July 1st.

The Wall Street bank also said it would remain focused on wellness initiatives in that division in order to make sure bankers have sufficient time off.

Previously, Citi had said that most of the roles at the bank would be designated as “hybrid” after the pandemic – or employees will be allowed to work remotely for up to two days per week.

Such a practice contrasted with the approach of Citi’s rivals such as Morgan Stanley, J. P. Morgan Chase and Goldman Sachs Group, where employees will probably return to office like before the pandemic.

Citigroup shares closed lower for the third time in the past ten trading sessions in New York on Friday. The stock went down 0.84% ($0.60) to $70.41, after touching an intraday low at $70.11. The latter has been a price level not seen since June 30th ($69.48).

Shares of Citigroup Inc have risen 14.19% so far in 2021 compared with a 15.87% gain for the benchmark index, S&P 500 (SPX).

In 2020, Citigroup Inc’s stock went down 22.82%, thus, it again underperformed the S&P 500, which registered a 16.26% gain.

Analyst stock price forecast and recommendation

According to TipRanks, at least 10 out of 12 surveyed investment analysts had rated Citigroup Inc’s stock as “Buy”, while 2 – as “Hold”. The median price target on the stock stands at $90.13.