Citicorp’s President Quits Unexpectedly

Citicorp President Richard S. Braddock, the second-highest executive at the nation’s largest banking company, resigned unexpectedly on Monday.

Separately, the struggling New York banking giant said it expects to earn $80 million to $100 million in the third quarter, a significant improvement over the $885-million loss in the year-ago quarter. The bank was hit hard last year by troubles in its Los Angeles-based Quotron unit, loan problems and huge costs associated with laying off workers.

Braddock’s decision to leave Citicorp caught analysts and employees off guard, and his reasons remained vague. In a statement, the bank said that Braddock wants to “pursue new career opportunities,” adding that he believes his contribution to the struggling bank’s turnaround has been realized.

Bank sources noted that Braddock, who turns 51 next month, and Citicorp Chairman and Chief Executive John Reed, 53, are close enough in age that Braddock’s chances are remote of ever heading Citicorp soon. They suggested that Braddock may want a chief executive-level job now.

In a statement, Reed said he was sorry to see Braddock leave, adding that Braddock’s “contribution was to the growth of the consumer business. He has been an important part of the senior team during this turnaround.”

Citicorp, parent of Citibank, is undergoing an extensive revamping after being hit hard by problem commercial real estate loans such as those made to ailing Canadian giant Olympia & York.

It has also suffered embarrassments because of problems in a mortgage unit that came to a head when a secret regulatory report critical of the unit was leaked to the press. But a Citicorp spokesman said it would be unfair to assume that Braddock’s resignation had anything to do with the mortgage unit’s problems.

Despite Citicorp’s troubles, a growing number of bank analysts believe that the bank is showing signs of improvement, although they warn that the turnaround is fragile because of the nation’s weak economy and real estate markets.

Citicorp is predicting that its year-to-date earnings for the first nine months of this year will be between $405 million and $425 million, contrasted with a $324-million loss in the same period a year earlier. It added that it is showing gains in its consumer business, despite the soft economy, and is enjoying strong foreign exchange results.

No successor was named to succeed Braddock, who also resigned as a director. Various managers are expected to assume his duties. Braddock was unavailable for comment, a Citicorp spokesman said.

Citicorp’s stock fell 25 cents a share to close at $15.50 on the New York Stock Exchange. The announcement came after financial markets closed.