Jane Fraser has been three years Revealed Her strategic vision for Citi, during which the CEO received significant criticism for his overhaul of the country’s third largest bank. but Bank of America According to a June 26 research report, analysts believe Fraser is competing for competitiveness.
Citi is one of the largest banks in the country with a total assets of $2.5 trillion. employment As of last year, there were about 229,000 full-time workers. Fraser took over as CEO of Citi in March 2021 and is widely regarded as the most powerful woman on Wall Street. (This year, Fraser The most powerful list of women.
Citi is no stranger to overhaul. In the late 1990s, banks Experienced Citicorp and Traveler Created Citigroup. Cloth Reorganization After the 2008 financial crisis, it was carried out again in 2019 Reorganization.
Fraser has put a considerable scrutiny on the latest Citi reforms. She is facing Analystregulators, and even internal objection. But Bank of America research analyst Ebrahim Poonawala thinks “this time is different”, which is his June 26 title.
“We think Citi’s turnover is one of the most complex figures in the business world, but Fraser took action (such as international consumer exits, balance sheets, risk departures, technology/person investments, simplifying businesses, hiring outside talent), which leads us to think that, in our opinion, Poonawala wrote in the notes. Poonawala reiterated Citi’s “buy” rating and raised its price target from $89 to $100.
Fraser’s big moves at Citi include Stripping Citi has franchises of nearly all international consumer banks, withdrawing from non-core businesses and overhauling leadership. Last year, Citi employment Vis Raghavan, former head of Global Investment Bank JPMorgan Chase Execute, lead the global banking industry. It also added Tim RyanPWC, leadership technology and business support, and Andy winsMerrill Lynch Wealth Management, Lead Wealth.
Over the past year, Bonavara said five of Citi’s businesses are tracking increased profitability, adding that wealth and banking under the new leadership have gained a greater focus. Analysts have no serious macroeconomic shock and Citi’s momentum is expected to continue, “providing management with more than 10% tangible common equity (ROTCE) returns in a sustainable way starting in 2026.” Rotce is a measure used to compare banks and how much they use tangible shared interests to generate profits.
In the first quarter, Citi’s efficiency ratio in each of its core business units fell, while in the quarter a year ago, Poonawala said. He said this reflects management’s concern about controlling costs.
