Citing people familiar with the matter, the Financial Times reported that Citigroup CEO Jane Fraser is considering spinning off the bank’s largest unit in what would be the biggest restructuring in about 15 years.
Fraser is considering separating the institutional business, which accounted for 75 percent of the bank’s profits last year, into three units that include investment and institutional banking, global markets and transaction services.
Upon completion of the separation, the directors of the new divisions will report directly to the CEO.
Earlier this month, the bank announced that the director of the unit to be spun off, called the Institutional Clients Group, would leave by the middle of the year.
And Citigroup announced last month that its profits declined in the second quarter of the year, affected by the cost of laying off employees and increasing provisions for credit losses.
The bank said net profit fell 36 percent year-on-year to $2.92 billion, or $1.33 per share, in the three months ended June 30, which it attributed to higher cost of layoffs and higher provisions for credit losses.
The bank achieved profits of $4.45 billion during the second quarter of last year.
2023-08-21 14:08:37
#Citigroup #separating #largest #unit #part #restructuring #process
