Jane Fraser said Citigroup Inc.'s pullback from Mexico will be its last big structural change under a "strategy refresh" she initiated when she took over as CEO in early 2021.
"This particular exercise is drawing to a close in terms of what I call the big step back as a new CEO," she said on a Jan. 14 conference call on 2021 fourth-quarter results. "I'm confident that we've made the right big structural decisions."
"This is our final decision in terms of market exits," she said.
Citi is looking to sell its consumer, small business and middle-market operations in Mexico, while building on its institutional and private banking businesses in the country. It is also in the process of exiting consumer operations in 13 other markets across Asia and Europe. In total, the businesses being exited accounted for $8.75 billion of revenue in 2021, or about 12.2% of the total for the company.
The announcement of the Mexico exit Jan. 11 received strong reviews from analysts as a bold break with the past. It also raised speculation among analysts that further big steps might be on the way, including in its U.S. retail franchise.
In its fourth-quarter earnings report, Citi also unveiled a new business line reporting structure that it will begin to use no later than the second quarter. A new institutional clients group will have three segments: services — including the bank's treasury and trade solutions business — markets and banking. A personal banking and wealth management segment will include U.S. personal banking encompassing credit cards and retail banking, and a global wealth management unit.
Citi plans to elaborate on its strategy and give its medium-term performance goals at an investor day on March 2. On the earnings call, Fraser said the bank's vision "is to be the preeminent bank for institutions with cross-border needs."
"We'll be a global leader in wealth, a major player in consumer payments and lending in the home market," she added.
Fraser said executives would set out the strategy for U.S. personal banking in March, with the retail bank playing a "supporting role" to credit cards and personal lending.
"We've been focused in the retail bank in the U.S. in driving digital deposit growth and continuing to make sure that, that business generates a stable, low-cost funding for the firm here in the U.S.," she said. "And we'll expect to continue growing that going forward."