Citigroup CEO Jane Fraser stated that she determined to exit the financial institution’s retail operations in 13 nations exterior the U.S. to enhance returns.
One of many largest priorities for Fraser, who took over for predecessor Michael Corbat in February, is to carry New York-based Citigroup’s returns nearer to these of friends together with JPMorgan Chase and Financial institution of America.
“As we have a look at the companies over a decade forward, we wish to be a winner,” Fraser advised CNBC’s Wilfred Frost on “Closing Bell” in her first televised interview since formally beginning as CEO.
“We wish to shut the return hole with our friends,” Fraser stated. “To do this you’re taking a candid evaluation of which of the companies that you’ll be ready to reach successful, and which of them are maybe in higher arms with one other financial institution.”
Final week, Citi stated it was exiting retail banking in 13 nations exterior the U.S. to focus extra on wealth administration, one of many first large strategic strikes made by Fraser. The lender additionally reported first-quarter outcomes that exceeded analysts’ estimates for revenue with sturdy funding banking income and a bigger-than-expected launch of loan-loss reserves.
There are clear areas of alternative for Citigroup, the third largest U.S. financial institution by property behind JPMorgan and Financial institution of America, the CEO stated.
The financial institution is “doubling down” in areas together with its international institutional banking enterprise and wealth administration in Asia and the U.S., she stated.
And Fraser is not accomplished along with her strategic evaluate that might see extra enterprise divestitures, she stated: There’s “extra to come back, for certain” by way of bulletins, she stated.
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