Finance

Citi mulls plan to split Institutional Clients Group in overhaul -source

Citigroup is considering plans to reorganize the bank’s biggest division after its leader Paco Ybarra leaves next year, according to a source familiar with the situation.

The bank is unlikely to replace Ybarra, the head of its Institutional Clients Group (ICG), the source said. Instead, the leaders of its three business segments — investment banking, global markets and transaction services — would report directly to CEO Jane Fraser.

The plans are still being considered and have not been finalized, the source said.

The discussions were reported earlier by the Financial Times.

The ICG unit provides financial services to institutional investors and governments. It generated more than half of Citi’s $19.4 billion revenue in the second quarter.

Ybarra is set to leave in the first half of 2024, according to an internal memo seen by Reuters earlier this month. The company also said at the time it was determining how to pass on his responsibilities while simplifying its organizational structure in the coming months.

Citigroup declined to comment on the report.

Source : Reuters

GLOBAL BUSINESS AND FINANCE MAGAZINE

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