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Citigroup, which has spent the past few years rethinking its undersized U.S. branch network, on Friday unveiled plans to reformat its physical locations, starting this year in Miami. Executive William Howle explained the changes in an interview.
March 14 -
Cece Stewart, who spent three years trying to turn around Citi's U.S. retail banking operations, is retiring. In an interview, she cited account growth, productivity improvements and cross-selling of credit cards as accomplishments that offset "enormous headwinds."
March 6 -
Citigroup promoted Jane Fraser as head of U.S. consumer and commercial banking to succeed Cecelia Stewart, who plans to retire at the end of April.
March 6
Jane Fraser, the new head of Citigroup's (NYSE:C) U.S. consumer and commercial unit, has promoted William Howle to run its U.S. retail bank.
It's a savvy move by Fraser, who
Stewart surprised industry observers somewhat
Howle's role is a new one at Citigroup, and gives him responsibility for "the core segments, functions and products needed to serve the retail client base," according to a memo Fraser sent to employees this week. He will report directly to Fraser, with a "matrix responsibility" to Jonathan Larsen, Citi's global head of retail banking. He will also oversee the U.S. commercial bank on an interim basis until Fraser and global commercial bank head Sunil Garg name a successor.
"Will brings continuity of direction and strategy to our retail business, together with the breadth and depth of experience needed to lead and grow this critical franchise," Fraser said in the memo.
Howle has helped oversee some of Citigroup's recent efforts to rethink its consumer operations, in part by reorganizing its traditional branch network. The bank is
His promotion also makes organizational sense for Fraser, who will continue to oversee Citigroup's U.S. mortgage operations as she takes over consumer and commercial banking. Still, she and Howle confront a retail banking environment that has challenged Citigroup and most of its competitors ever since the financial crisis. Low interest rates and compressed margins not to mention increased competition and regulation have reduced the profits that banks can make from their traditional businesses of taking deposits and lending to customers.
Citigroup, which is due to report first-quarter results next week, also has some individual challenges to overcome. The bank, which has spent the past five years trying to recover from almost failing during the financial crisis, got