Citigroup announced Thursday it’s setting ambitious profitability goals for the next few years, with the financial giant targeting an adjusted return on tangible common equity between 11% and 13% for 2027 and 2028. The bank is counting on CEO Jane Fraser’s extensive restructuring plan to deliver these improved results.
These new objectives represent a step up from Citigroup’s current goal of reaching a return on tangible common equity of 10% to 11% this year. This financial metric serves as a key indicator in the banking industry for measuring how effectively a company generates profits from its tangible assets.
The bank revealed these targets just before hosting its investor presentation on Thursday, where executives planned to outline their medium-term strategic objectives across different business units. Financial analysts had been expecting even more aggressive targets, potentially reaching 15% to 18% by decade’s end.
Fraser, now six years into leading the institution, is conducting her second major investor presentation to showcase the outcomes of an extensive corporate transformation. Her overhaul included divesting retail operations around the globe, streamlining management structure, and strengthening risk management and oversight functions.
Since Fraser assumed leadership in March 2021, Citigroup’s stock value has surged by more than 80%. This year alone, shares have climbed over 9%, outpacing the broader market’s approximately 7.5% gain during the same period.
The bank recently exceeded Wall Street projections for its first-quarter earnings, generating strong revenue from trading operations while also capitalizing on increased deal-making activity that boosted investment banking income.
Citigroup achieved a return on tangible common equity of 13.1% during the first quarter and recorded its strongest quarterly revenue in ten years at $24.6 billion.
