Citigroup Investor Day: CEO stresses restructuring efforts

Citigroup's (C) CEO Jane Fraser took center stage at the bank's investor day, addressing the company's strategic direction with a particular emphasis on its services business. However, Fraser's remarks rattled investors, as she firmly asserted that Citigroup is not the "financial supermarket of the past," instead highlighting the bank's efforts to restructure and streamline various aspects of its operations.

Yahoo Finance's David Hollerith breaks down the details.

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This post was written by Angel Smith

Video transcript

Citigroup, Ceo Jane Frazier speaking out earlier telling investors the company is no longer the financial supermarket of the past here with more as Yahoo Finance's own.

David Hoth, David.

Hey Josh.

So today was about uh Citigroup's services business, which is kind of a lesser known uh part of its business of of the bank's massive international operations.

And the point of it is to basically help multinational companies move money across the world.

Um But Frazier also made a point of outlining how this Investor Day, even though it's just one part of the business was also meant to refocus on what's looking like a new city, a new version of of the bank.

Um And the context here obviously is that Ceo Jane Frazier laid out ambitious goals in 2022 to essentially uh right size.

The bank.

Uh Citigroup has been lagging peers for years.

Um And so a lot of the efforts over the past year has been about restructuring and reorganizing and downsizing Citigroup's business services is sort of a business they have not highlighted yet, in some ways, it's a little bit dull to the average person, but it's actually a huge asset for Citigroup in that it has sort of scale of health of working with multinational uh companies.

Um and also the amount of countries that it operates and to the point where it's kind of something else that no other Wall Street Bank can really offer.

So those two things were on the table.

Um As far as financial updates from the bank, um they kept their targets for 2026 and for the full year for the second quarter, they are expecting slightly lower net interest income.

They're also expecting a 50% increase in investment banking fees.

Um, that's compared to last year, so a big boost in investment banking fees for the second quarter.

Um, but all tying all of this together, the financial supermarket was what really originally formed city, um, in the 19 nineties, uh, which came out of a conglomeration of businesses.

And so Frazier came out today, essentially underlining the fact that, um, she's dismantling that for a new vision of Citigroup.