Citigroup CEO Jane Fraser mentioned she determined to exit the financial institution’s retail operations in 13 nations outdoors 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 take a look at the companies over a decade forward, we wish to be a winner,” Fraser instructed 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 mentioned. “To try this you’re taking a candid evaluation of which of the companies that you’ll be ready to achieve profitable, and which of them are maybe in higher fingers with one other financial institution.”
Final week, Citi mentioned it was exiting retail banking in 13 nations outdoors the U.S. to focus extra on wealth administration, one of many first huge strategic strikes made by Fraser. The lender additionally reported first-quarter outcomes that exceeded analysts’ estimates for revenue with robust 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 belongings behind JPMorgan and Financial institution of America, the CEO mentioned.
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 mentioned.
And Fraser is not executed together with her strategic evaluate that might see extra enterprise divestitures, she mentioned: There may be “extra to come back, for certain” when it comes to bulletins, she mentioned.
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