Citigroup's in the Midst of an Impressive Transformation
We view Citigroup’s turnaround strategy as appropriate, effectively leveraging the firm's strengths in institutional services while shedding noncore assets. The business model has evolved significantly, spearheaded by a massive simplification effort to eliminate five management layers and exit 14 international consumer markets. Similar to Goldman Sachs' consumer banking exit, we believe that discarding capital-intensive operations like Banamex, the final piece of the consumer business carve-out, frees up significant capital for redeployment into more value-accretive business lines. We take a positive view of this organizational simplification and the more focused model around five segments that results.
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