Citigroup taps Jane Fraser as next CEO, the first woman to helm a major U.S. bank

Corbat’s eight-year helm as chief executive and cumulative 37 years with the company spanned the nation’s recovery from the 2008 financial crisis and coronavirus recession. Under his leadership, Citigroup said, the bank’s net income nearly tripled, from $7 billion to roughly $20 billion.

With Fraser, Citigroup will become the first of the nation’s six major banking institutions with a female leader. Her rapid rise prompted speculation that the CEO job was within reach. Two years ago, CNN anchor Poppy Harlow asked Fraser whether she’d ever considered the position. Fraser noted that she’d seen a shift in Wall Street culture that could ease the way for female chief executives.

“I look forward to seeing a woman being the first CEO of a Wall Street firm, whoever that may be,” Fraser said in the August 2018 interview. “Sometimes it is much more fun to be able to run a division of a business because it’s not the same limelight as it is when you’re running a public organization. I never had the ambition to be a CEO, of Citi or any another organization. Things could change over time, but, at the moment, I’ve still got a lot to learn.”

In her current role, Fraser oversees all consumer businesses in 19 countries, including retail banking and wealth management, mortgages, credit cards and related operations and technology, the company said.

Eric Compton, a Morningstar equity analyst who covers Citigroup, said in a note to investors Thursday that Fraser is well-equipped to navigate the economic uncertainty of the coronavirus pandemic.

“Corbat gained a lot of experience during his time leading the ‘bad bank’ unit of Citigroup, Citi Holdings. Throughout his time at Citigroup, Corbat helped to scale back the bank’s operations, cut costs, close branches, and work through a series of divestitures,” Compton said. “Corbat served in a variety of banking roles around the world during his time at Citigroup, and Fraser is no different.

He noted that Fraser has experience in Europe, Latin America and the United States and has worked in several units across the bank. “We like her broad experience at Citigroup and the fact that she has taken on tough projects that span Citi’s diverse operations.”

Her Citigroup career spans 16 years, starting with the corporate and investment banking division in 2004. Three years later, she was named global head of strategy for mergers and acquisitions. From 2009 to 2013, she was the chief executive of Citi’s private bank, after which she took over as chief executive of U.S. consumer and commercial banking and CitiMortgage. In 2015, she became chief executive of the company’s Latin America region. She has held her current job since 2019.

“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,” Fraser said in a news release Thursday. “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.”

Source:WP