Citi confirms its focus on regulatory compliance ahead of investor day at key unit

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(Reuters) – Citigroup said on Tuesday it will redouble efforts to automate certain processes and data related to regulatory reporting and pledges to invest in its risk and control environment in the near future.

The lender faces some regulatory challenges related to the so-called living will, which details how the company will be dissolved in the event of bankruptcy.

The board of the Federal Deposit Insurance Corporation, the banking industry’s top regulator, plans to vote on Thursday to downgrade its rating of Citi’s data management systems to “deficient” from “deficient,” Reuters reported on Monday.

Citi CEO Jane Fraser will deliver opening remarks at the investor day on Tuesday, highlighting the strategy of its services business that helps manage payments and liquidity for multinational corporations.

She will be succeeded by CFO Mark Mason and Shahmir Khaliq, who heads services.

The presentations will allow investors to “take a deeper dive into the business that underpins our strategy and unrivaled global network,” Fraser said in a statement before the event.

Services is Citigroup’s most profitable division and is key to Fraser’s turnaround strategy. The business generates approximately 20% of Citi’s revenues.

(Reporting by Tatiana Bautzer in New York and Niket Nishant in Bengaluru; Editing by Lananh Nguyen, Sriraj Kalluvila and Krishna Chandra Eluri)