Citigroup to Divest Trust Administration and Fiduciary Services as Part of Strategic Overhaul

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Citigroup (C.N) announced on Friday that its wealth management division is embarking on a process to sell its trust administration and fiduciary services business. The bank revealed in a statement that this decision is part of a broader strategy aimed at sharpening its focus on providing critical wealth structuring advice to its global clientele.

The move aligns with CEO Jane Fraser’s extensive efforts to revamp Citigroup’s operations, streamline its extensive business portfolio, and enhance overall performance. Fraser’s strategy includes significant cost-cutting measures and a simplification of the bank’s various divisions to drive efficiency and profitability.

Under Fraser’s leadership, Citigroup has been actively reshaping its business model, particularly in the wealth management sector, which is a central component of her plan to boost the bank’s profitability. As part of this initiative, Fraser appointed Andy Sieg, formerly of Bank of America, to spearhead the turnaround efforts within the wealth management division. Sieg’s role is to guide the transformation of this crucial area to better serve clients and drive growth.

The decision to divest the trust administration and fiduciary services platform is a strategic move designed to refine the bank’s focus on its core strengths in wealth structuring. By shedding this business segment, Citigroup aims to streamline operations and direct more resources towards areas that are poised for growth and offer greater value to clients.

This latest announcement follows Citigroup’s recent moves to exit various international retail banking markets as part of Fraser’s strategic overhaul. Earlier this year, the bank also decided to close its municipal securities business, further reflecting its commitment to restructuring and optimizing its operations.

The sale of the trust administration and fiduciary services business represents a significant step in Citigroup’s ongoing efforts to refine its business model, enhance operational efficiency, and improve overall profitability. As the bank continues to execute its strategic plans, the focus remains on aligning resources with its key growth areas and delivering superior value to its clients.