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. Watch the full video:
Since the company's collapse during the 2008 recession, Citigroup's stock has continuously struggled, with sharesIn 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 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.". It's a tactical move that several other major banks like Bank of America and Wells Fargo have adopted in recent years.
"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."
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 theBut, instead, Citigroup's wealth management revenue fell 5% year over year in the second quarter of 2023.
"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."above to see how Citigroup is planning its comeback.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Midyear outlook: Why market history says to expect 'outsize' performance in the second half of 2023Market history tells us that a strong first half of the year typically serves as a running start for the second. So the rest of 2023 looks good for the market.
Lire la suite »
Here's Why 'White House Down' Went from Box Office Bomb to 2023 Netflix Hit'White House Down' was initially deemed a box office dud, but now it's a smash hit on Netflix for a variety of reasons.
Lire la suite »
Why 'Stranger Things' & 'Euphoria' Didn't Get 2023 Emmy NominationsSorry, it’s not a Sadie Sink snub.
Lire la suite »
Why Devils think this prospect is ‘the example of player development’ — and why he’ll find his way to the NHL roster in 2023-24The Devils have the No. 2 ranked prospect pool, according to The Athletic.
Lire la suite »
2023 Emmy Award nominations: See the complete listNominations for the 2023 Emmy Awards were revealed Wednesday.
Lire la suite »
‘Succession,' ‘White Lotus,' and ‘Ted Lasso’ Lead 2023 Emmy Noms‘Succession’ leads the pack with 28 nominations.
Lire la suite »