Citi says profit took a $3.8 billion hit in the fourth quarter of 2023, as the lender set aside reserves and recorded charges related to its international exposure and its own sweeping restructuring plan, the New York City-based lender outlined in a regulatory filing Wednesday.

The bank set aside $1.3 billion related to cross-border and cross-currency exposures in Argentina and political instability in Russia, according to the filing, which comes two days ahead of the bank’s fourth-quarter earnings report on Friday.

Citi said the reserve build is related to “currency devaluation and geopolitical risk that may impact Argentina’s ability to sustain external debt service,” and “the prolonged political and economic instability” in Russia.

The bank said it took a $720 million hit in the fourth quarter as a result of the recent devaluation of the Argentine peso. The firm also recorded charges of $580 million related to its exposure to Russia. 

The firm also said it recorded a $1.7 billion charge related to the Federal Deposit Insurance Corp.’s special assessment. The regulator levied special assessments on the nation’s largest banks as it looks to replenish the deposit insurance fund following the collapse of several regional banks last year.

Citi also recorded a $780 million charge in the fourth quarter related to the sweeping overhaul initiated by CEO Jane Fraser to rein in costs.

The bank said the restructuring charges are largely driven by severance, non-cash asset impairments and other related charges, as part of the organizational and management simplification initiatives it made last year.  

The firm, whose stock price has fallen behind its peers in recent years, said its restructuring is aimed at eliminating layers of management such as regional managers, co-heads and employees with overlapping responsibilities. 

Citi cut more than 300 senior manager roles in November as part of the overhaul.

In a blog post on Wednesday, Citi CFO Mark Mason said the items disclosed in the Wednesday SEC filing won’t change the bank’s strategy.  

“While we rarely provide information about the results of the quarter in advance of scheduled earnings announcement dates, we thought this was a prudent step in our commitment to building credibility and being transparent with our stakeholders, including our colleagues,” he wrote. “While these items are meaningful for our 2023 results, we remain on track to meet the 2023 expense guidance (excluding FDIC and divestitures) and all of our medium-term targets.”