Citigroup Inc (NYSE:C)'s chief executive, Jane Fraser, is contemplating a significant restructuring of the bank's primary division, marking the most substantial reorganisation in nearly 15 years, according to the Financial Times.
The proposal involves dividing the Institutional Clients Group (ICG) — responsible for almost three-quarters of Citi's $14.8 billion net profits in 2022 — into its three main sectors: investment and corporate banking, global markets, and transaction services.
The separated units would remain under their current leadership, reporting directly to Fraser, enhancing her day-to-day oversight, the paper said.
This potential change follows the announcement of Paco Ybarra, ICG's head, departing next year, with no successor currently identified, the FT added.
Historically, Citi has functioned with two main divisions: ICG and a consumer-centric division.
However, a recent announcement revealed plans to separate wealth management, led by Andy Sieg, from its consumer bank.
If the ICG division is split, Citi would operate with five distinct divisions.
While no final decision has been made, Fraser views this potential restructuring as an opportunity for individual business leaders to exert more influence over their sectors and the bank's overarching strategy, the FT said.
The ICG was established in 2009 during a revamp to rejuvenate the bank after the global financial crisis.