Citigroup (C) Services Investor Day 2024 summary

Strategic vision and business transformation

• Aims to be the leading banking partner for institutions with cross-border needs, a global leader in wealth, and a valued personal bank in the home market, moving away from the financial supermarket model.

• Transformation focuses on simplification, technology modernization, talent, and a leaner, more agile structure, with 2024 as an inflection year toward medium-term targets by 2026.

• Rebuilt around five interconnected businesses: Services, Markets, Banking, Wealth, and U.S. Personal Banking, with nearly all consumer business exits outside the U.S. completed.

• Progress includes organizational simplification, divestitures, enhanced risk management, automation, and cloud adoption to reduce manual processes and legacy systems.

• Transformation investments are expected to unlock value, improve efficiency, and strengthen regulatory and risk controls.

Financial performance and guidance

• Total revenues grew from $71.9B in 2021 to $78.5B in 2023, with a 4-5% CAGR targeted through 2026 and 2024 revenue guidance of $80-81B.

• Services achieved over $18B in revenue in 2023, with a 20% annual growth rate since 2021 and pre-tax earnings up 18% annually to over $7B.

• Expenses reached $56.4B in 2023 due to critical investments, but are expected to trend lower to $51–53B by 2026 as simplification and cost reductions take effect.

• Medium-term ROTCE target is 11–12% by 2026, up from 4.9% in 2023, with Services expected to deliver mid-20s ROTCE.

• Capital optimization remains a priority, with improved CET1 capital ratio and RWA efficiency despite higher regulatory requirements.

Services business highlights and growth drivers

• Services is central to growth, delivering a 20% revenue CAGR from 2021–2023 and representing 23% of total revenues ex-divestitures.

• Combines Treasury and Trade Solutions (TTS) and Securities Services, serving 19,000 clients (85% of Fortune 500), moving $5T daily, and generating over half of firm deposits.

• TTS is ranked #1 in liquidity, payments, and trade for institutional clients; Securities Services is #1 in Direct Custody and Clearing, with a 13% YoY increase in assets under custody/administration.

• Growth driven by innovation, technology investment, and integration across product lines, with a focus on client experience and platform modernization.

• Strategic priorities include deepening institutional relationships, expanding in commercial segments, investing in technology, and capturing growth in eCommerce, FinTech, and digital assets.