Citigroup CEO To Split Its Biggest Division To Gain More Control: Report

Citigroup Inc C is reportedly considering separating one of the largest divisions, Institutional Clients Group (ICG), into several businesses.

CEO Jane Fraser plans to split the division into three primary business segments: investment and corporate banking, global markets, and transaction services, reported Financial Times. 

The separated units would be run by their current heads and will report to Fraser. 

As per the report, the proposed plan is expected to give Fraser more direct control over the operations.

ICG, which generated revenue of around $10.4 billion in Q2 FY23 (accounting for over 50% of total revenues), offers financial services to institutional investors and governments.

As per the report, the transaction will be the bank's most significant shake-up of its corporate structure in nearly 15 years.

The move follows the bank's announcement of the departure of Paco Ybarra, ICG head, by the middle of next year.

The report noted that no final decision had been made and that the plan is one of several options under consideration.

Last week, Citigroup closed the sale and full migration of its Taiwan consumer businesses to DBS Group Holdings Ltd DBSDF DBSDY, expected to drive capital benefit of about $1.2 billion. 

Price Action: Citigroup shares are trading higher by 0.33% at $42.39 premarket on the last check Monday.