Since the company’s collapse during the 2008 recession, Citigroup’s stock has continuously struggled, with shares falling more than 30% over the past five years<\/a>.<\/p>\n

In response, Jane Fraser, the CEO of Citigroup, announced a bold shift in company strategy, and it has exited 14 consumer markets outside of the United States since April 2021.<\/p>\n

“What’s been obvious to analysts for a long time is that Citi had become too unwieldy and too big to manage,” said Hugh Son, a banking reporter at CNBC. “Ultimately, a lot of the disparate parts overseas didn’t really have very many synergies between them.”<\/p>\n

Citigroup instead announced its plans to divert resources and double down on wealth management<\/a>. It’s a tactical move that several other major banks like Bank of America and Wells Fargo have adopted in recent years.<\/p>\n

“It offers high returns and it creates growth opportunities in areas that are in the early stages of wealth generation like Asia and the Middle East,” according to Mike Mayo, a senior banking analyst at Wells Fargo Securities. “And it comes with less risk of big mishaps so the regulatory treatment is better.”<\/p>\n

Despite the shift in strategy, though, Citigroup’s investment in wealth management hasn’t started to pay off. In 2022, the firm expected global wealth management to generate a compound annual revenue growth in the high single digits to low teens<\/a>.<\/p>\n

But, instead, Citigroup’s wealth management revenue fell 5% year over year in the second quarter of 2023.<\/p>\n

“It waits to be seen whether Citigroup will be successful,” said Mayo. “I’m skeptical, for as much as I am more positive about Citi’s strategy when it comes to their global payments or banking or markets business. I think it’s to be determined how this wealth management strategy plays out.”<\/p>\n

Citigroup declined to provide someone for CNBC to interview for this piece.<\/p>\n

Watch the video<\/a> above to see how Citigroup is planning its comeback.<\/p>\n<\/div>\n<\/div>\n

Source: www.cnbc.com<\/p>\n","protected":false},"excerpt":{"rendered":"

Since the company’s collapse during the 2008 recession, Citigroup’s stock has continuously struggled, with shares falling more than 30% over the past five years. In response, Jane Fraser, the CEO of Citigroup, announced a bold shift in company strategy, and it has exited 14 consumer markets outside of the United States since April 2021. “What’s…<\/p>\n","protected":false},"author":1,"featured_media":40917,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"WB4WB4WP_MODE":"","WB4WP_PAGE_SCRIPTS":"","WB4WP_PAGE_STYLES":"","WB4WP_PAGE_FONTS":"","WB4WP_PAGE_HEADER":"","WB4WP_PAGE_FOOTER":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[78],"tags":[],"class_list":["post-40916","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"yoast_head":"\n