64 CEO Jane Fraser’s ambitious restructuring of Citigroup (C.N) has garnered investor approval, evident in the share price surge following the announcement of cost-cutting measures involving the layoff of 5,000 employees. However, attention now shifts towards driving growth in wealth management and investment banking sectors. While Wall Street applauds Fraser’s initiative, concerns loom regarding regulatory hurdles, subdued earnings, and employee discontent. Moody’s analyst Peter Nerby likens the current phase to the middle of a chess game, indicating the challenges ahead. Despite a remarkable 49% increase in Citigroup’s shares post-overhaul announcement, outpacing the KBW bank index’s 26% climb, the stock’s performance metrics, such as trading at 0.57 of book value, fall short compared to industry peers like JPMorgan Chase and Bank of America. Investment managers like Daniel Babkes of Pzena Investment Management express confidence in the bank’s expense control abilities post-reorganization, while Ian Lapey of Gabelli Funds and Hunter Doble of Hotchkis & Wiley foresee improved efficiency following the reshuffle. You Might Be Interested In Nigeria’s Economic Journey Beyond Decline be’ah’s digital platform for waste trading soon World Bank warns of ‘lost decade’ for global growth due to pandemic, inflation and war World Bank, EU, UN Report Evaluates Impact of Severe Flooding in Libya MAS Collaborates with Industry to Create Generative AI Risk Framework U.K. to Invest £225 Million in Revolutionary AI Supercomputer Development
