Citigroup's Turnaround Remains in the Early Innings but Signs of Progress Have Been Encouraging

Citigroup has an international commercial banking franchise and a domestically focused retail banking unit. The bank's commercial operations—services, markets, and banking segments—have large trading, investment banking, international corporate banking, and custody operations. The commercial banking operation is Citi's most unique business, as its global footprint is hard to replicate. This international presence will help Citigroup remain a bank of choice for many cross-border companies. While this global presence offers some advantages, it is expensive and complicated to maintain, and the bank's markets desk also produces low returns. As a result, returns for the commercial banking business have been mixed.