Michael Corbat, CEO of Citi, will retire and step down from the company’s board of directors in February of 2021 following a 37-year career at the company, including the last eight years as CEO. Citi’s board of directors selected Jane Fraser, currently Citi’s president and CEO of global consumer banking, to succeed Corbat as CEO in February, and she has been elected to the board of directors, with service beginning immediately. Fraser has been at Citi for 16 years and has been in her current roles since 2019.
“I am extremely proud of what we have accomplished in the past eight years,” Corbat said. “We completed our transformation from the financial crisis and emerged a simpler, safer and stronger institution. Across our businesses, we made investments in products where we saw opportunities for growth and Citi has regained its place as a leader in banking. We doubled down on our global network, making it indispensable for our clients and gained significant share across our markets and banking franchises. In consumer banking, we rationalized our footprint and embraced the push to digital, making it a centerpiece of our branch-lite footprint and we now deliver best-in-class products and experiences to our customers.
“Our financial performance improved steadily and significantly during the eight years before COVID as we kept our commitment to increase our return on and of capital to our shareholders. From 2012 to 2019, Citi’s net income increased from $7 billion to nearly $20 billion and our return on tangible common equity increased from 5% to over 12%, closing the gap with our peers. We went from returning hardly any capital to returning nearly $80 billion in capital to our shareholders over the last six years.
“Through it all, we showed the character of our people and our firm as we took leadership roles in the fight against climate change and for gender equity. Citi’s performance through COVID-19 has shown our strength and resilience, and I am confident Citi will continue to be a valuable partner to our clients and customers.
“Of course, there is always more to do and I believe the time is right for my successor to lead Citi through this next stage of progress. We know there are products where we can still gain share. We know that the expectations of our customers and clients keep increasing and we have to work harder to keep up. And as the world’s most global bank, safety and soundness always have to be a foundation of our institution. We have launched significant investments in our infrastructure as part of our push to make strengthening our risk and control environment a strategic priority for the firm.
“I have worked with Jane for many years and am proud to have her succeed me. With her leadership, experience and values, I know she will make an outstanding CEO.”
“The board deeply appreciates Mike’s many contributions to Citi and he will leave the firm in a much stronger position than he found it,” John C. Dugan, chair of Citi’s board of directors, said. “He led with integrity and has been dedicated not only to the performance of the firm but also to the well-being and growth of our people. He has helped make Citi a place where they are proud to work.
“We believe Jane is the right person to build on Mike’s record and take Citi to the next level. She has deep experience across our lines of business and regions and we are highly confident in her. Jane’s ability to think strategically and also operate a business are a unique combination that will serve our company well.”
“I am honored by the board’s decision and grateful to Mike for his leadership and support,” Fraser said. “The way our team has come together during this pandemic shows what Citi is made of. Our balance sheet is strong and our commitment to serving our clients and communities is even stronger. I will do everything I can to make all of our stakeholders proud of our firm as we continue to build a better bank and improve our returns. We will invest in our infrastructure, risk management and controls to ensure that we operate in a safe and sound manner and serve our clients and customers with excellence. Citi is an incredible institution with a proud history and a bright future. I am excited to join with my colleagues in writing the next chapter.”
As president of Citi and the CEO of global consumer banking, Fraser’s global responsibilities include all consumer businesses in 19 countries, including retail banking and wealth management, credit cards, mortgages, and associated operations and technology.
Before her current role, Fraser was the CEO of Citi’s Latin American region from 2015 to 2019. From 2013 to 2015, she was the CEO of U.S. consumer and commercial banking and CitiMortgage. From 2009 to 2013, she served as the CEO of Citi’s Private Bank. Prior to that, she was the global head of strategy and mergers and acquisitions for Citi from 2007 to 2009. She joined Citi in 2004 in the corporate and investment banking division. Before joining Citi, Fraser was a partner at McKinsey & Company. She started her career at Goldman Sachs in the mergers and acquisitions department in London and then worked for Asesores Bursátiles in Madrid.
Citi will name a new CEO of global consumer banking in the coming weeks.