Citigroup Inc. (NYSE:C) has announced that it plans a 900-person staff increase in its Citi Commercial Bank division that serves mid-sized companies in more than 60 countries as it advances with its expansion strategies outlined at its investor day.
The growth will include more than 400 commercial bankers in the next three years as the big bank aims to increase headcount in developed markets and large emerging markets.
Citigroup will capitalize on the increasing need for sophisticated banking solutions, accelerating global growth and digital capabilities, by leveraging its global connectivity and institutional expertise in working capital management and strategic capital market operations.
With the anticipation of an acceleration in business activities, Citi Commercial Bank is thus making large-scale investments in the hiring process to adapt to increased needs and serve clients with an annual turnover of $10 million to $3 billion.
The expansion move comes at a time when the Wall Street institution has been cutting down its international footprint by exiting non-core markets and repositions its consumer operations to focus on global wealth centers, payments and lending, and a targeted retail presence in the U.S.
Chief Executive Jane Fraser, who took the helm last year, has looked to simplify the bank and bring its profitability more in line with its peers. Therefore, new hires will be prevalent in the United States, China, Brazil, India, and Western European countries and represent the largest investment in headcount.
"CCB will focus on deepening client relationships through investment in our bankers and digital channels and by providing multiple client touchpoints into the rest of Citi." - The Global Head, Tasnim Ghiawadwala of Citi Commercial Bank.
The arrangement will strengthen Citi's services, including treasury and trade solutions, securities, and its collaboration with global wealth management.
Following Citi's Investor Day, analyst Susan Roth Katzke at Credit Suisse maintained a Buy rating on the stock but reduced the price target from $72 to $66, implying an upside potential of 18.81%.
The stock has a Moderate Buy consensus rating based on 10 Buys and 9 Holds. Shares have lost 20.78% over the past year.
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