Citigroup is scrapping its share of global consumer banks, and restructuring its businesses to signal the flight of CEO Jane Fraser from international retail banks.
Starting this year, Citigroup will present a report on the results of private banking in the US and global financial management, lowering the number of international banks that are reflected in its revenue in each category. since 1999.
The renovation was announced along with higher earnings than expected in the fourth quarter, and just a few hours later. Citigroup said was selling four franchises to buy banks in Southeast Asia at Singapore’s United Overseas Bank. Earlier this week, Citigroup revealed its intention to leave Mexico buy business.
For the last quarter of 2021, Citigroup reported a profit of $ 3.18bn, or $ 1.46 a share, up from $ 4.3bn, or $ 1.92 per share, last year. Profitability was hampered by rising consumer prices in Asia and efforts to develop banking solutions to appease lenders.
Researchers surveyed by FactSet predicted that they would receive $ 1.39 per share.
The update confirms Fraser’s “awareness revival” for the fourth largest U.S. lender and commodity lender, whose shares have not been in close contact with its Wall Street counterparts for years.
Fraser began to make a major change even before he officially took over the post last February. His most courageous actions have so far stemmed from a consumer bank, which has been embroiled in internal disputes for years due to its small size.
In April, it was announced that Citi was launching a number of its own shopping centers around the world for sale in an attempt to free up money that can be reimbursed profitably in other business ventures.
The unit, which Fraser held for a year before being promoted to top-level job, generated about 44 percent of revenue and 29 percent of profits in 2019.
Consumer banking performance continued to weigh heavily on Citi’s results in the recent quarter. Group revenues increased by 1 percent to $ 17bn while a 6 percent reduction in consumer bank spending reduced business growth by 4 percent from corporate clients.
The planned developments will put an end to the global financial collection that Sandy Weill, a former chief executive, made in the early 2000s, which experts now say is now a disparate group of businesses. Subsequent governors have tried to eliminate unscrupulous consumer businesses, but experts say they are encouraged by Fraser’s actions.
“Jane Fraser dispels the vision of a 50-year failure,” Mike Mayo, a Wells Fargo bank specialist, said when the commercial was announced last year.
Citi’s return to its home market follows a major overhaul of international banks. Last year, HSBC sold its retail business to the US, abandoning its 40-year attempt to run a full-service bank in the country.
Commercial banks around the world adopted the idea that banks could help high-end consumers who travel around the world to work and vacation but “global consumerism has not materialized,” Mayo said.