Citi is shaking up a $33 billion business — and a key banking executive is out

  • Citigroup is shaking up its $US33 billion Global Consumer Banking division.
  • Stephen Bird, CEO of the GCB, announced Monday a structural reorganization focused on Citi’s US consumer operation.
  • Citi veterans Anand Selva and David Chubak are taking on new senior roles as part of the reorg, while Jud Linville, global head of cards and consumer services, is leaving the firm.
  • Citi’s consumer bank has struggled to keep up with the profitability and deposit share of competitors.

Citigroup is shaking up its $US33 billion consumer banking unit.

The bank, the fourth-largest in the US by assets, announced Monday several changes in the top rungs of management within its Global Consumer Banking division in an effort to “align our structure with our strategy,” Stephen Bird, the CEO of the division, wrote in a memo viewed by Business Insider.

Citi’s consumer operation in the US, which has lagged behind competitors in terms of profitability and share of deposits, is moving to a regional model – which is how its retail operations in Mexico and Asia are currently organised. The restructuring will come with two new roles:

  • Anand Selva, currently the head of consumer banking in Asia Pacific, will be the head of US consumer banking.
  • David Chubak, currently the head of global retail banking, will be h ead of retail banking and consumer lending.

Jud Linville, the head of global cards and consumer services, is leaving the firm after eight years.

“Today, I am announcing a new organizational structure and two new roles to harmonize our operating model globally. This will intensify efforts to win in the U.S., our largest market, and drive greater client- centricity across product, segment and geography,” Bird said in the memo.

“This action aligns the U.S. franchise with the regional model deployed in Asia and Mexico where we have seen the benefits of cross-product synergies, greater collaboration and accelerated speed to market and decision- making,” he continued.

With Selva’s promotion to the lead US role, Gonzalo Luchetti, currently head of Asia Pacific Retail Banking, will serve as interim head of Asia consumer.

Citi’s GCB 2017 revenue of $US32.7 billion was largely flat from two years prior, while net income plummeted 37% from that period.

The North American GCB has sustained the bulk of the losses, with net income falling to $US2 billion in 2017, down 51% from 2015.

Citi underwent a lengthy overhaul of its entire operations following the financial crisis, in which it jettisoned noncore business lines, trimmed its corporate customer base, and scaled back on brick-and-mortar retail banking footprint.

It declared its overhaul complete last summer at its first investor day since since 2008.

The bank, which slashed its retail branches in the US by a third to 700 post-crisis, has struggled to keep up with top competitors JPMorgan Chase, Bank of America Merrill Lynch, and Wells Fargo in luring deposits from individuals.

As of 2017, it only had 4% of US deposits, compared with 11% for each of its three largest rivals, according to S&P Global.

In May, ValueAct Capital revealed it had amassed a $US1.2 billion stake in Citigroup.

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