These are the 3 untouchable businesses at Citigroup which has undergone layoffs and restructurings this year

Citigroup has undergone massive changes in 2019, including layoffs and multiple divisional restructurings. But as the bank chases its return-on-equity target in the back half of the year amid roiling markets and looming recession concerns, there are a few business lines it won’t compromise on. Citi Chief Financial Officer Mark Mason said on Monday at…

These are the 3 untouchable businesses at Citigroup which has undergone layoffs and restructurings this year

Citigroup has undergone massive changes in 2019, including layoffs and multiple divisional restructurings. But as the bank chases its return-on-equity target in the back half of the year amid roiling markets and looming recession concerns, there are a few business lines it won’t compromise on. Citi Chief Financial Officer Mark Mason said on Monday at a financial conference that it remained committed to its 12% target for return on tangible common equity (ROTCE), and expense reductions are on the table — especially in “transactional expenses and incentive compensation” — if revenues head south in the uncertain months ahead. The bank, which has for years been dogged by critics for missing performance targets and returns that have lagged peers, has taken action early and often in 2019 to revamp business lines and craft a leaner operation. That includes overhauls to its stock-trading group and its rates and currencies trading teams, as well as the wind down of a $1 billion principal-investing unit. Citi also cut hundreds of jobs across sales and trading this summer, including roughly 10% of its equities division. Read more: Citigroup is shaking up its stock-trading group. 3 execs will be in charge of the new-look unit. Such organizational changes, in addition reorganizations in 2018 within its investment bank and North American consumer franchise, “have freed up and created efficiencies to either reinvest or allowed a flow-through to the bottom-line,” Mason said. But some of the firm’s businesses are off limits to cuts — even in the pursuit of hitting its pledged goals to investors. The three untouchable units at Citigroup, according to Mason, are Treasury and trade solutions, securities services, and branded cards, the linchpin to the firm’s US retail-banking battle plan. “One thing that I want to reiterate is that we cannot compromise investing in core parts of our franchise that allow for us to h
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