Daily Management Review

Citigroup to split up its institutional client business


Sources told the FT that the head of Citigroup is thinking about dividing the company's institutional clients division into three sections.

Can Pac Swire
Can Pac Swire
Citigroup CEO Jane Fraser is thinking of dividing the Institutional Clients Group (ICG) into three sections, as reported by the Financial Times.

Fraser suggests dividing the biggest part of the bank, which produced about 75% of Citi's $14.8 billion in net revenue in 2022, into three main categories: transaction support, global markets operations, and corporate and investment banking.

It is anticipated that all former executives will continue to work for each segment and will answer directly to Fraser, providing her greater oversight over the day-to-day operations of the bank.

Internal talks regarding the proposal started after the bank revealed in August that ICG CEO Paco Ybarra would retire in mid-2024. The bank was reportedly not actively seeking a new ICG head, according to FT sources.

source: ft.com