Why Citibank Branches Are Closing Around The World
CNBC・8 minutes read
Citigroup has faced financial struggles, leading to a significant drop in stock value and profitability challenges. CEO Jane Fraser announced a strategic shift focusing on wealth management by exiting retail markets outside the U.S., aiming to rebuild the business after divesting from various countries.
Insights
- Citigroup has faced significant financial challenges, with a substantial drop in stock value and underperformance in efficiency and returns, necessitating a strategic shift towards wealth management by exiting retail markets.
- Despite focusing on wealth management, Citigroup's revenue declined in this sector, highlighting the uncertainty surrounding the success of its new strategy and the need for rebuilding its wealth management business.
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Recent questions
What challenges has Citigroup faced recently?
Financial struggles post-2008 recession, underperformance in efficiency and returns.
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Summary
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Citigroup's Strategic Shift Towards Wealth Management
- Citigroup has faced financial struggles since the 2008 recession, with a more than 30% drop in stock value over the last five years.
- The company has been underperforming in efficiency, returns, and stock market valuation, leading to profitability challenges.
- Citigroup, once the largest bank in America, is now the third largest domestically and the 11th largest globally in terms of assets.
- CEO Jane Fraser announced a strategic shift in 2021, exiting 13 retail markets outside the U.S. to focus on wealth management.
- Citigroup is simplifying its business by divesting from various countries and doubling down on wealth management.
- Citigroup's revenue mainly comes from its Institutional Clients Group and personal banking/wealth management divisions.
- Despite expectations for growth, Citi's wealth management revenue fell 5% year over year in the second quarter of 2023.
- Citigroup aims to rebuild its wealth management business after selling off a successful division during the financial crisis, with the success of its new strategy remaining uncertain.
