Why Citibank Branches Are Closing Around The World
CNBC・2 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.
Get key ideas from YouTube videos. It’s free
Recent questions
What challenges has Citigroup faced recently?
Financial struggles post-2008 recession, underperformance in efficiency and returns.
Related videos
Financial Times
Credit Suisse: what next for the crisis-hit bank? | FT Film
Think School
How did Credit Suisse fail so fast? What can Indians learn from this Economic case study?
Think School
Why is Europe facing a BANKING CRISIS like 2008? : Credit Suisse Crisis Business case study
FRONTLINE PBS | Official
Money, Power and Wall Street, Part One (full documentary) | FRONTLINE
ColdFusion
When Risk Taking Goes Too Far - The Archegos Collapse
Summary
00:00
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.
