A 'hidden asset' at Citigroup has given the bank a dominant position in the fastest-growing business on Wall Street — but challengers are knocking at the door

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A 'hidden asset' at Citigroup has given the bank prime position in Wall Street's fastest-growing business. Can it fend off oncoming competitors?

"A big part of our original investment thesis was related to that part of the business — that this is underappreciated about Citi," said

"Because we are so foundational, we are increasingly becoming the connective tissue for the firm," Sultan told Business Insider."Our ability to create value beyond the TTS financials is increasing significantly." At the most basic level, Citi's treasury and trade group is like a storefront local bank branch, but instead of managing everyday cash and credit concerns for you and me, they do it for the largest companies and government organizations in nearly 100 countries across the world.

"It is the biggest separation that's ever been done, and it's not a typical spin off where you've got one big company spinning off a little part of the company," then-CEO Meg Whitman told analysts after announcing the move. "TTS is the ATM for multinationals at a time when multinationals have increasingly complex needs for cash management," Mike Mayo, a senior bank analyst with Wells Fargo and a, told Business Insider."The more complex the cash management needs are of a multinational organization, the more valuable Citi can be."

 

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