Bloomberg Television - Citi's Fraser Won't Grade the Bank Turnaround Plan Yet
Citigroup is in the midst of a significant transformation aimed at becoming a high-return, high-quality earnings institution that is simpler and more modern. The CEO emphasizes the importance of having the right strategy, vision, talent, and culture to achieve these goals. The transformation is described as a multi-year journey, with a focus on discipline and avoiding shortcuts. The CEO acknowledges that the restructuring is not yet complete, and thus, they cannot yet grade their progress. The goal is to increase returns on tangible common equity to 11-12% in the medium term, despite current returns being at 6.8%. The CEO highlights the ambitious steps taken, such as divesting international consumer franchises and reorganizing the company structure, affecting 50,000 employees. The emphasis is on accountability, urgency, and delivering tangible outcomes, with a commitment to continue this transformation process.
Key Points:
- Citigroup aims to become a high-return, modern, and simpler institution with a global impact.
- The transformation is a multi-year journey focused on discipline and avoiding shortcuts.
- Current returns on tangible common equity are at 6.8%, with a target of 11-12% in the medium term.
- Significant steps include divesting international consumer franchises and reorganizing the company structure.
- The focus is on accountability, urgency, and delivering tangible outcomes.