Citigroup is restructuring and streamlining operations under CEO Jane Fraser.
It entails dividing the organisation into five distinct business lines, all of which will directly report to Fraser. The primary objective behind this restructuring initiative is to enhance efficiency in decision-making processes and eliminate unnecessary layers of management.
The heads of the "five interconnected businesses" will also be members of the executive management team. This integration grants them increased sway over the bank's strategic direction and operational execution and will also "enhance accountability" within the organisation.
The streamlining process will see the discontinuation of the personal banking and wealth management layer, along with the institutional clients group. Additionally, the bank will remove regional layers in the Asia-Pacific region, Europe, the Middle East, Africa, and Latin America as it exits these specific business segments.
Alongside the restructuring, Citigroup reaffirmed the objectives outlined during its 2022 investor day. These objectives include achieving a return on tangible equity falling within the range of 11% to 12% and maintaining an efficiency ratio below 60%. The bank will give a more comprehensive breakdown of the financial implications when it releases its fourth-quarter earnings report.
The market welcomed the announcement with Citi's stock closing 1.66% higher yesterday.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.