Citigroup may split institutional clients division into three – Kommersant
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According to Financial Times, citing its own sources, Citigroup management is considering splitting the Institutional Clients (ICG) division into three parts. The head of each will then report directly to CEO Jane Fraser, giving her more power in the company, the newspaper claims.
ICG is perhaps the key division of Citigroup. At the end of 2022, it accounted for three-quarters of the company’s net profit, which amounted to $14.8 billion. It also generates more than half of the bank’s revenue. At the end of last year, its revenues amounted to about $41 billion.
According to Fraser’s plan, ICG can be divided into three key segments: corporate and investment banking, operations in global markets and transaction support. The reason for the change in the structure of the bank was the decision of Paco Ibarra to leave the position of head of ICG in mid-2024. Instead of looking for a successor to him, the bank can split the division under its control, de facto simply turning the already existing ICG departments into independent divisions. At the same time, they will be headed by the current heads of the relevant departments.
If approved, the plan would be the largest restructuring of Citigroup’s business in 15 years. Cititgroup itself does not comment on rumors about the upcoming ICG split.
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