Three sectors will be formed by separating this unit
Dubai – Al Arabiya.net
Posted on: August 21, 2023: 05:08 PM GST Last updated: August 21, 2023: 06:53 PM GST
Citigroup chief executive Jane Fraser is considering a plan to spin off the bank’s largest unit, in what would be the bank’s biggest restructuring in about 15 years.
According to the “Financial Times”, the group is considering separating the business of institutions or “Institutional clients”, which accounted for three quarters of the group’s profits last year, amounting to $ 14.8 billion for the year 2022.
It is expected that three sectors will be formed as a result of the separation of this unit, which includes corporate investment banking, global markets and transaction services.
The separate units will be run by their current bosses, who will report directly to Fraser, giving them greater day-to-day control. If the proposal is adopted, it would be the largest management restructuring under Fraser, who presided over the bank in 2021.
The discussions come after the bank announced this month that Paco Ybarra, who runs the institutional business department, will leave by the middle of next year. No Lebara replacement has been named, and people familiar with the matter say the bank is not actively looking for one.
For more than a decade, Citigroup has operated in two divisions. Corporate business division and a consumer-focused division which includes retail, credit card and wealth management departments.
Citi’s investment banking division, like its Wall Street banking rivals, has suffered from a decline in deals, while its trading business recently reported a sluggish second quarter as well.
2023-08-21 14:53:16
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