Citi Poised To Unload Half A Trillion In Assets
Citigroup announced its current and future plans at its investor day presentation this morning.
May 9, 2008
As Citigroup continues to attempt a recovery from the credit crisis, its embattled leader announced plans Friday to unload $500 billion of legacy assets and a goal of 9% revenue growth over the next few years.
Citigroup announced its current and future plans at its investor day presentation this morning.
In the first quarter of 2008, the financial giant produced $13.32 billion in revenue, a 48% decrease from the $25.46 billion in the first quarter of 2007. In the fourth quarter of 2007 and the first quarter of this year, the bank lost $14.94 billion combined.
Citigroup said in its presentation that within the next two to three years, the strongest revenue growth will come from the transaction services division, where its goal is 14% growth. The bank also hopes to produce between a 16% and 18% return on current equity investments.
The smallest revenue producing division is predicted to be Citi’s global cards business, with a 7% growth outlook.
CEO Vikram Pandit has been under increasing pressure to do something bold at the struggling bank after a series of what many saw as incremental changes that weren’t significant enough to turn around the company’s fortunes. He also made it clear Friday that the bank’s overarching strategy won’t change. "We believe the right model is a global universal bank.”
The bank outlined three plans under a broad “value creation” platform: Get Fit, Restructure and Maximize.
Shares of Citi are up 0.6% Friday at $24.45.
Find out more information about people mentioned in this article from our People Database:
For more information on related topics, visit the following:
