Citigroup Is Transitioning From a Period of Restructuring to Growth and Enhanced Profitability
We view Citigroup’s turnaround strategy as appropriate, effectively leveraging the firm's strengths in institutional services while purposefully shedding noncore assets. The firm's business model has evolved significantly, spearheaded by a massive simplification effort, coined “Project Bora Bora,” to eliminate five management layers and exit 14 international consumer markets. Similar to Goldman Sachs' consumer banking exit, we believe that discarding capital-intensive operations like Banamex, the final piece of the consumer business carve-out, frees up significant capital for redeployment into more value-accretive business lines. We take a positive view of this organizational simplification and the more focused model around five segments that results.
United States