Citigroup CEO retires, first female CEO appointed

Mr Corbat has held the role of CEO at the global bank, which operates in more than 160 countries and jurisdictions, since 2012.

As well as being CEO of the group, Mr Corbat had also previously been CEO of Europe, Middle East and Africa, CEO of Citi Holdings, CEO of global wealth management and global head of corporate bank and commercial bank.

He will step down from the board of directors and retire as CEO in February 2021.

Jane Fraser will succeed him as CEO in February.

Ms Fraser has been at Citi for 16 years and is currently Citi’s president and CEO of global consumer banking, where she is responsible for all consumer businesses in 19 countries, including retail banking and wealth management, credit cards, mortgages and the associated operations and technology.

She has now been elected to the board of directors, with service beginning immediately.

'The time is right for my successor to lead Citi through this next stage’

Speaking of his retirement, Mr Corbat said he was “extremely proud” of what Citi had accomplished in the past eight years, including emerging from the global financial crisis as a “simpler, safer and stronger institution”, and that it had doubled down on its global network and improved its financial performance over that time.

“We went from returning hardly any capital to returning nearly $80 billion in capital to our shareholders over the last six years,” he said.

“In consumer banking, we rationalised our footprint and embraced the push to digital, making it a centerpiece of our branch-lite footprint, and we now deliver best-in-class products and experiences to our customers,” he said.

“Through it all, we showed the character of our people and our firm as we took leadership roles in the fight against climate change and for gender equity. Citi’s performance through COVID-19 has shown our strength and resilience, and I am confident Citi will continue to be a valuable partner to our clients and customers.”

Mr Corbat continued: “Of course, there is always more to do, and I believe the time is right for my successor to lead Citi through this next stage of progress. We know there are products where we can still gain share; we know that the expectations of our customers and clients keep increasing and we have to work harder to keep up.

“And as the world’s most global bank, safety and soundness always have to be a foundation of our institution. We have launched significant investments in our infrastructure as part of our push to make strengthening our risk and control environment a strategic priority for the firm.”

Mr Corbat said: “I have worked with Jane for many years and am proud to have her succeed me. With her leadership, experience and values, I know she will make an outstanding CEO.

John Dugan, chair of the board of directors, thanked Mr Corbat for his service, stating: “The board deeply appreciates Mike’s many contributions to Citi, and he will leave the firm in a much stronger position than he found it.

“He led with integrity and has been dedicated not only to the performance of the firm, but also to the wellbeing and growth of our people. He has helped make Citi a place where they are proud to work.”

‘A bright future’

Speaking of Ms Fraser’s appointment, Mr Dugan added: “We believe Jane is the right person to build on Mike’s record and take Citi to the next level. She has deep experience across our lines of business and regions and we are highly confident in her.

“Jane’s ability to think strategically and also operate a business are a unique combination that will serve our company well,” Mr Dugan concluded.

The incoming CEO said: “I am honored by the board’s decision and grateful to Mike for his leadership and support. The way our team has come together during this pandemic shows what Citi is made of. Our balance sheet is strong and our commitment to serving our clients and communities is even stronger.

“I will do everything I can to make all of our stakeholders proud of our firm as we continue to build a better bank and improve our returns. We will invest in our infrastructure, risk management and controls to ensure that we operate in a safe and sound manner and serve our clients and customers with excellence.

“Citi is an incredible institution with a proud history and a bright future. I am excited to join with my colleagues in writing the next chapter.”

Ms Fraser has been Citi’s president and CEO of global consumer banking since 2019. Before this role, she was the CEO of Citi’s Latin American region from 2015 to 2019 and has also been CEO of the US Consumer and Commercial Banking and CitiMortgage.

From 2009 to 2013, Ms Fraser served as the CEO of Citi’s Private Bank. Prior to that, she was the global head of strategy and mergers and acquisitions for Citi from 2007 to 2009.

Before joining Citi, Ms Fraser was a partner at McKinsey & Company. Citi will name a new CEO of global consumer banking in the coming weeks.

[Related: HSBC outperforms peers on mortgage growth]