Latest news with #CitiHandlowy
Globe and Mail
2 days ago
- Business
- Globe and Mail
C's Business Overhaul Progresses Well: Is This Convincing Investors?
Citigroup Inc. C has been emphasizing leaner, streamlined operations to reduce expenses. The transformation process includes an organizational restructuring, which resulted in a streamlined and straightforward management structure aligned with and supporting the bank's strategy. In January 2024, the bank announced plans to cut 20,000 jobs, approximately 8% of its global staff, by 2026. So far, the bank has made significant progress, reducing its headcount by 10,000 employees. Also, Citigroup has been focusing on growth in its core businesses by streamlining its international operations. In April 2021, C announced plans to exit the consumer banking business in 14 markets across Asia and EMEA. The freed-up capital is likely to be reallocated to higher-return segments like wealth management and investment banking. In sync with this, last month, Citigroup, through its subsidiary Citibank Europe Plc, announced that Citi Handlowy agreed to sell its consumer banking business in Poland. The company has already successfully exited consumer banking businesses in nine countries — Australia, Bahrain, India, Indonesia, Malaysia, the Philippines, Taiwan, Thailand and Vietnam. As part of its strategy, Citigroup continues to make progress with the wind-downs of its Korea consumer banking operations and its overall operations in Russia. It is also preparing for an initial public offering of its consumer banking and small business, and middle-market banking operations in Mexico. Through such initiatives, the company expects revenues to see a compounded annual growth rate of 4-5% by 2026-end and will further drive $2-2.5 billion of annualized run rate savings. Management expects the return on tangible common equity to be 10-11% by 2026. Key Competitors Challenging Citigroup Wells Fargo WFC is making efforts to strengthen its operations. While the bank is reducing headcount and streamlining processes, it is investing in its branch network and upgrading digital tools to augment the customer experience. As part of its attempts to improve the branch experience, Wells Fargo is investing more in branch staff and upgrading technology. This allows it to maintain a focus on cost management while enhancing customer service and accessibility. With such strategic efforts, Wells Fargo expects $2.4 billion of gross expense reductions in 2025, driven by efficiency initiatives. Bank of America BAC continues to strengthen its operations by aligning its banking centers according to customer needs. The bank has embarked on an ambitious expansion plan to open financial centers in new and existing markets. By 2027, Bank of America plans to expand its financial center network by opening more than 150 centers. It also remains committed to providing modern and state-of-the-art financial centers through its ongoing renovation and modernization project. These initiatives will enable Bank of America to improve its digital offerings and cross-sell several products, including mortgages, auto loans and credit cards. C's Price Performance, Valuation & Estimates Shares of Citigroup have gained 10.4% year to date compared with the industry 's growth of 9.6%. Meanwhile, BAC shares have gained 2.2% and WFC has risen 8.8% in the same time frame. Price Performance From a valuation standpoint, C trades at a forward price-to-earnings (P/E) ratio of 9.42X, below the industry's average of 13.70X. Price-to-Earnings F12M The Zacks Consensus Estimate for C's 2025 and 2026 earnings implies a year-over-year rise of 23% and 25.9%, respectively. The estimates for 2025 and 2026 have been revised upward over the past 30 days. Image Source: Zacks Investment Research Citigroup currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bank of America Corporation (BAC): Free Stock Analysis Report Wells Fargo & Company (WFC): Free Stock Analysis Report Citigroup Inc. (C): Free Stock Analysis Report
Yahoo
28-05-2025
- Business
- Yahoo
Citigroup Arm Enters Deal to Exit Consumer Banking Business in Poland
Citigroup Inc.'s C, through its subsidiary Citibank Europe Plc, announced that Citi Handlowy has announced an agreement to sell its consumer banking business in Poland to VeloBank S.A (Velobank). This transaction aligns with Citigroup's broader strategy to exit consumer banking and strengthen its focus on core operations. The agreement involves the demerger of Citi Handlowy's consumer banking operations, including wealth management, micro business banking, credit cards, consumer loans, deposits, and assets under management, consumer clients of the brokerage business, branches, and other consumer-related assets to VeloBank. Notably, employees and branches of consumer business will also transition to VeloBank S.A. upon completion of the transaction. However, the transaction excludes Citi Handlowy's institutional banking operations, which the company will continue to invest in and expand to serve clients in Poland locally, regionally, and globally. The transaction, subject to regulatory approvals and antitrust clearance, is expected to close by mid-2026. While financially immaterial to Citigroup, it is anticipated to provide a modest regulatory capital benefit. The transaction, subject to regulatory approvals and antitrust clearance, is expected to close by mid-2026. While financially immaterial to Citigroup, it is anticipated to provide a modest regulatory capital benefit. Citigroup's head of International, Ernesto Torres Cantú, commented on the transaction, stating, "Citi Handlowy has been providing financial solutions to corporations in Poland through a history spanning 155 years, and we remain fully committed to Poland's economic growth and to our institutional clients in the country. This transaction enables us to deploy additional resources to our institutionally focused businesses, so we can continue to connect corporations in Poland to our global network." Cantú further added, 'We're proud of this significant milestone in simplifying our firm, and we're pleased that our consumer banking colleagues in Poland are going to a buyer that will continue to invest in this great franchise. We wish them well in their careers with VeloBank and thank them for their dedication in serving their clients with excellence during this process.' He also emphasized Citigroup's commitment to simplifying its operations while ensuring continuity for consumer banking clients. Citigroup has been winding down its consumer banking operations globally to focus on higher-return segments. In line with this, in April 2021, Citigroup announced its plan to exit consumer banking operations in 14 markets across Asia and EMEA. In sync with this, in December 2024, Citigroup completed the separation of its institutional banking operations in Mexico from its consumer, small business, and middle-market segments, marking a significant milestone in its restructuring efforts. Earlier, in June 2024, Citigroup sold its China-based onshore consumer wealth portfolio to HSBC China, a wholly owned subsidiary of HSBC Holdings plc. As part of its broader strategy, Citigroup has continued to wind down its Korea consumer banking operations and its overall presence in Russia while preparing for a planned initial public offering of its consumer banking and small business and middle-market banking operations in Mexico. These moves by Citigroup aim to free up capital for investment in higher-return segments like wealth management and investment banking. Through these efforts, Citigroup expects revenues to achieve a compounded annual growth rate of 4-5% by 2026-end, while driving $2-2.5 billion in annualized run-rate savings by 2026. Management also projects a return on tangible common equity of 10-11% by 2026, reinforcing the company's commitment to long-term profitability and efficiency. Through strategic exit from non-core businesses, C will enhance its focus and boost its operational efficiency within its key business segments. This strategic focus will likely lead to improved profitability in the future, as Citigroup focuses its resources on high-growth areas. Over the past year, shares of Citigroup have gained 21.4% compared with 29.6% growth recorded by the industry. Image Source: Zacks Investment Research Currently, Citigroup carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. In March 2025, HSBC Holdings Plc's HSBC U.K. division, HSBC UK Bank plc, announced the sale of its private client trust business – HSBC Trust Company (UK) Limited – to Ludlow Trust. The financial terms of the transaction have not been disclosed. This move aligns with the HSBC business simplification plan announced in October 2024. Further, in sync with its effort, the company announced the winding down of its investment banking activities in the U.K., Europe and the United States, and divestitures of its French life insurance arm, HSBC Assurances Vie (France) and private banking business in Germany. It also announced the sale of its business in South Africa. Likewise, in February 2025, Barclays PLC BCS completed the sale of its German consumer finance business, Consumer Bank Europe, to BAWAG P.S.K., a subsidiary of Austria-based BAWAG Group AG. This move aligns with the company's plan to streamline its operations as outlined in the Investor Update in February 2024. This sale is part of BCS's broader strategy to exit retail banking in Europe, responding to shifts in consumer behavior post-pandemic. In addition to the German sale, Barclays has announced plans to enhance digital banking services in the U.K. and expand its corporate and investment banking presence globally, including new ventures in Asia. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Citigroup Inc. (C) : Free Stock Analysis Report Barclays PLC (BCS) : Free Stock Analysis Report HSBC Holdings plc (HSBC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-05-2025
- Business
- Yahoo
Citi sells Polish consumer business to VeloBank
This story was originally published on Banking Dive. To receive daily news and insights, subscribe to our free daily Banking Dive newsletter. Citi Handlowy, Citi's Polish arm, will sell its consumer banking business to VeloBank and shift its focus to institutional clients. The deal, announced Wednesday and subject to regulatory approvals and antitrust clearance, is expected to close by mid-2026. The estimated value of the sale for shareholders will amount to about 1.1 billion zloty ($292.5 million), Citi Handlowy told Reuters. In a press release, Citi said the deal will be financially immaterial to the bank, but that it expects it to lead to a modest regulatory capital benefit upon closing. 'Citi Handlowy has been providing financial solutions to corporations in Poland through a history spanning 155 years, and we remain fully committed to Poland's economic growth and to our institutional clients in the country,' Ernesto Torres Cantú, Citi's head of international, said in a prepared statement. 'This transaction enables us to deploy additional resources to our institutionally focused businesses, so we can continue to connect corporations in Poland to our global network.' The buyer, VeloBank, is affiliated with Cerberus Capital Management, the European Bank for Reconstruction and Development and the International Finance Corporation. Citi Handlowy's consumer banking business includes wealth management, micro business banking, credit cards and consumer loans, as well as deposits and assets under management, consumer clients of the brokerage business, branches and other consumer-related assets. The bank plans to continue to invest in its institutional businesses. This is part of a broader retreat from retail banking in 14 international markets, which the bank began in 2021. Thus far, Citi has closed sales in nine markets and wound down three of them. Poland marks its 10th sale, according to a spokesperson. The bank had determined the markets weren't scalable, the spokesperson said. Citi's sole remaining international consumer business is in Mexico. In December, Citi separated its retail business there, Banamex, from its institutional operations, and plans to pursue an initial public offering for Banamex this year. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-05-2025
- Business
- Yahoo
Citi Handlowy to divest Polish consumer banking arm to VeloBank
Bank Handlowy w Warszawie, operating under the Citi Handlowy brand, has agreed to divest its consumer banking division in Poland to VeloBank. The deal will see the demerger of various consumer banking services, including wealth management, credit cards, consumer loans, and deposits, from Citi Handlowy to VeloBank. This transaction will also involve the transfer of employees and branches associated with the consumer banking unit to VeloBank. Completion of the deal, which is pending regulatory and antitrust approvals, is anticipated by mid-2026. The institutional banking operations of Citi Handlowy will not be included in this sale, as the bank plans to continue its investment and growth in these areas to serve its clients both locally and internationally. Citi International head Ernesto Torres Cantu said: 'Citi Handlowy has been providing financial solutions to corporations in Poland through a history spanning 155 years, and we remain fully committed to Poland's economic growth and to our institutional clients in the country. 'This transaction enables us to deploy additional resources to our institutionally focused businesses, so we can continue to connect corporations in Poland to our global network.' The management board of Citi Handlowy has received a fairness opinion from EY and another financial advisor regarding the transaction's fairness for shareholders. Citi Handlowy received advisory support from Citi during this transaction. This sale follows Citi's previous announcements regarding the divestiture of its international consumer banking operations, with Mexico remaining its last major consumer market. Citi is also progressing with plans for an initial public offering of Grupo Financiero Banamex, contingent on regulatory clearances and market conditions. Recently, Reuters reported citing unnamed sources that Citigroup will shed up to 200 IT contractor positions in China. "Citi Handlowy to divest Polish consumer banking arm to VeloBank" was originally created and published by Retail Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Reuters
28-05-2025
- Business
- Reuters
Citigroup's Polish unit presents strategic plan to transition to institutional banking by 2027
GDANSK, May 28 (Reuters) - Poland's Citi Handlowy ( opens new tab announced late on Tuesday that it has established new strategic development directions for years 2025 through 2027, on the condition that an agreement to sell its consumer business to VeloBank is sealed. Upon finalising the transaction, the bank intends to introduce a new business model focused on institutional value beginning in 2027. By that time, it aims to shift profits from consumer business to higher earnings from institutional banking and to diversify the revenue streams and balance sheet structure of its institutional banking division. The company's new goals include keeping the cost of income ratio below 30%, compared to the 45% seen in the strategy published in December. Under the updated strategy, the planned regular dividend payout ratio over a three-year period is expected to range between 75% and 100%, the bank said. In December, the bank projected a 15% return on equity for 2027, but now expects it to reach about 19%.
