The reorganization train continues to roll at Citigroup Inc., with further changes in the works under CEO Jane Fraser, according to reports. Citigroup
will have five major operating units: trading, investment banking, U.S. personal banking, wealth management and business services, according to recent reports by the Financial Times and Reuters. The units will report directly to Fraser.
The news reports cited people familiar with the bank and said the plans have yet to be finalized. Paco Ybarra, head of Citi’s institutional-clients group, is leaving the company and his position will be eliminated, Reuters reported, citing people familiar with the bank. The institutional-clients group includes treasury and trade solutions as part of its services, as well as markets and banking businesses. A spokesperson for Citi declined comment. Odeon Capital analyst Richard Bove reiterated a buy rating on Citi and said the stock remains cheap relative to other stocks. “Putting [Fraser] in closer contact with operating units gives her an opportunity to assess their business directly,” Bove said. “The fact that this needs to be done after 53 years of reshaping and restructuring is quite frankly very discouraging.” Instead of using the company’s strengths and cash flow to pursue new ventures, Fraser remains focused on building upon the existing strengths of the company, such as providing core business services and trading capabilities, particularly in foreign exchange, he said. Looking ahead, Bove predicts Citi will continue to shrink but said it remains “rich in operating skills which are needed … and cash.” A …