In a strategic move to bolster its wealth management services, Citigroup is undergoing a significant restructuring. CEO Jane Fraser, who has made wealth management a key element in Citigroup's recovery plan, initiated a companywide restructuring in September. Following this initiative, Citigroup attracted over 15,000 new wealth clients in the Asia-Pacific region within just six months.
The latest development sees Eduardo Martinez Campos leaving the firm's wealth services after a notable three-decade tenure, during which he played a pivotal role in the markets sector. Meanwhile, Andy Sieg, returning from Bank of America (NYSE:BAC), has been appointed to oversee the restructuring of the wealth division. Sieg is organizing a meeting on December 5 to discuss the future structure of the division, including plans to bifurcate deposits and loans.
This shake-up comes after Citigroup's decision in October to sell its retail wealth segment in China to HSBC Holdings Plc (LON:HSBA). The sale marks a strategic shift for Citigroup as it refocuses its efforts on areas with stronger growth potential.
As part of Fraser's overarching strategy to streamline operations and drive growth, Citigroup is positioning itself to better serve its expanding client base and adapt to the evolving demands of the wealth management industry.
InvestingPro Insights
In light of Citigroup’s strategic efforts to enhance its wealth management services, key financial metrics and expert analysis from InvestingPro can provide valuable context. As of the last twelve months leading up to Q3 2023, Citigroup boasts a substantial market capitalization of $86.62 billion and has experienced revenue growth of 2.33%, with a more pronounced quarterly increase of 6.61%. This indicates an accelerating revenue growth trend, an InvestingPro Tip that aligns well with the company's expansion in the wealth management sector.
Despite the promising growth, Citigroup trades at a low earnings multiple with a P/E Ratio (Adjusted) of 6.93, suggesting that the market may not fully recognize the company’s earnings potential. Moreover, with a dividend yield of 4.67% as of the last data point, Citigroup has maintained its dividend payments for 13 consecutive years, a testament to its commitment to shareholder returns.
For investors looking for deeper insights and additional analysis, InvestingPro offers a comprehensive list of tips, including 6 analysts having revised their earnings upwards for the upcoming period, which may be particularly relevant given the company's restructuring. Subscribers to InvestingPro, now on a special Black Friday sale with a discount of up to 55%, can access these and many more tips to inform their investment decisions.
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