- Citigroup's profit rose in the second quarter, boosted by a 60% jump in investment banking revenue and gains in its services division.
CEO Jane Fraser is carrying out a sweeping overhaul in an effort to improve the bank's performance, cut costs and simplify its sprawling businesses. As part of the turnaround, Citi aims to shrink its workforce by 20,000 over the next two years. The new structure is part of Fraser's efforts to cut bureaucracy and increase profits. Under it, the leaders of the segments report directly to the CEO.
Services revenue increased 3% to $4.7 billion. The unit houses Citi's treasury and trade solutions business, which the company touts as its crown jewel. The business had flat revenue this quarter, at $3.4 billion. It processes $5 trillion of payments a day for multinational corporations across 180 countries.Fraser and other leaders highlighted their strategy for the services business at an investor day held at the bank's New York headquarters last month.
Rival JPMorgan Chase reported a rise in second quarter profit on Friday, while Wells Fargo's net income declined and it missed estimates for interest income.Analysts have called 2024 a transitional year for Citi as it becomes leaner under Fraser's turnaround.