Citigroup reported a 27 per cent decline in first-quarter profit, but surpassed market expectations on Friday, even as it took a $483 million charge linked to CEO Jane Fraser's comprehensive reorganisation efforts.

The bank's net income dropped to $3.4 billion, or $1.58 per share, for the three months ended March 31, compared to $4.6 billion, or $2.19 per share, a year earlier.

Fraser highlighted the conclusion of the organisational simplification announced in September, stressing on a cleaner, more streamlined management structure that aligns with the bank's strategy.

Shares of the third-largest US lender rose 2.5 per cent in early trading.

CFO Mark Mason noted that the reduction of 7,000 employees will reflect in data over the coming quarters, with an average notice period of about 90 days.

Citigroup expects annual savings of $1.5 billion from the overhaul, aiming to streamline operations and enhance efficiency.

The bank also contributed $251 million to a Federal Deposit Insurance Corp fund, which was depleted after three regional lenders failed last year.

Excluding one-time items, Citigroup's adjusted profit of $1.86 per share exceeded Wall Street expectations.

Revenue declined 2 per cent to $21.1 billion in the first quarter, but excluding one-off items, it was higher than the previous quarter.

The bank forecasts revenue between $80 billion to $81 billion for 2024, demonstrating cautious optimism amidst global economic uncertainties.

Performance in Citigroup's services and banking divisions stood out, with notable increases in revenue from cash management and investment banking services.

However, trading revenue fell, and wealth management revenue declined.

Despite the challenges, investors have shown confidence in Fraser's leadership, with the company's stock outperforming peers and the benchmark S&P 500.

Looking ahead, Citigroup aims to address regulatory concerns and enhance operational resilience as it navigates evolving market dynamics.

(With Reuters inputs)