Citigroup Eyes 4–5% Revenue CAGR and $2–2.5B Savings by 2026
Citigroup has exited nine of 14 consumer banking markets since April 2021, including selling AO Citibank in Russia and divesting a 25% Banamex stake, freeing up capital and reducing risk-weighted assets. The bank targets a 4–5% revenue CAGR through 2026, $2–2.5 billion in annual run-rate savings and a 10–11% ROTCE.
1. Market Exits and Divestitures
Since April 2021, Citigroup has exited nine of 14 consumer banking markets, including sales of its Russia-based AO Citibank and a 25% stake in Banamex. These moves, along with consumer business sales in Poland and China and the wind-down in Korea, aim to eliminate risk-weighted assets and prepare for a Mexican consumer banking IPO.
2. Organizational Realignment and Cost Cuts
The bank has streamlined its governance by cutting hierarchical layers and changed its operating model to reduce bureaucracy. In January 2024, Citigroup announced plans to cut 20,000 jobs by 2026 and has already reduced headcount by over 10,000, supporting its efficiency goals.
3. Financial Targets and Outlook
Citigroup forecasts a compounded annual revenue growth rate of 4–5% by the end of 2026 and plans to achieve $2–2.5 billion in annualized run-rate savings. Management is targeting a return on tangible common equity of 10–11% in 2026 as it shifts focus toward wealth management and investment banking fee income growth.