Episode summary
Citigroup CEO: 'We're Cheap. Get on the Train.' | At Barron's
At Barron's
· · 24 min · Hosts: Andy Serwer · Guests: Jane Fraser
Summary
Jane Fraser said Citigroup is at an inflection point: the bank is still finishing transformation work, but she argued the bigger story is now growth. She said Citi is targeting 10% to 11% ROC for 2026, is about 90% through its target-state transformation work, and expects further benefits from simplification, AI, and a more efficient cost base. She also said the first quarter’s 13%+ return on tangible common equity is not a new normal, because Q1 is typically the strongest quarter.
Fraser framed Citi’s growth engines as its global services franchise, wealth, banking, and consumer businesses. She highlighted services as a “crown jewel,” citing 17% growth and the bank’s scale in payments, tokenization, blockchain, and digital assets. On wealth, she said the platform is now built out after heavy investment and that client investment assets grew 14% over the last year, excluding the trust-business divestiture. She also said Citi’s global footprint is an advantage, not a liability, in a changing geopolitical environment.
On capital returns, Fraser said more buybacks are likely, but only after the bank prioritizes high-return investment and growth. She was careful on regulation, saying the consent-order timetable is out of Citi’s control, though expenses should already be coming down. Her bottom line for investors was emphatic: Citi is “cheap,” there is still substantial upside, and the bank is only “getting started.”
Key takeaways
- Fraser said Citi is targeting 10% to 11% ROC for 2026, with confidence after a strong start to the year.
- She said Citi is about 90% through its target-state transformation work, with some divestitures and cleanup still to finish.
- Fraser said services remains the key engine, with 17% growth and scale advantages in global payments, tokenization, and digital assets.
- She said wealth is past the hardest build-out phase, and client investment assets grew 14% over the last year before the trust-business divestiture.
- Fraser said more buybacks are possible because Citi’s earnings power is rising, but investment needs must clear a high return hurdle first.
Notable quotes
“we're looking at 10 to 11% ROC um and a strong commitment and after a very good start to the year confidence around that”
“I feel like we're only just getting started. Uh, and I I I truly mean that”
“we've completed a lot of the work. We've still got a bit more to do”
“we added in huge capabilities in e-commerce. So now the e-commerce juggernauts are major clients of ours around the world”
“We're cheap. Get on. Get on. Get get on the train”
How the episode opens
Hello everyone and welcome to At Barrens and welcome to our guest Jane Frasier, CEO of Cityroup. Jane, great to see you. Thank you for having us again to your headquarters. — Oh, it's wonderful to have you here. Thank you for coming on a glorious spring day.
It really is a beautiful day. So, we're heading very rapidly towards the midyear point of 2026 and I'm wondering what your goals are for this year and how far along you are to achieving them.
So, we've I've got a co goals for different time frames for the year. So, obviously one of our main commitments is delivering improved returns to our shareholders and so we're looking at 10 to 11% ROC um and a strong commitment and after a very good start to the year confidence around that. Um but we've also got the goal of making sure we continue to uh execute against our transformation.
Um so been a priority for a number of years and we are 90% through with the uh being at our target states. And then our third priority is around growth. Um we are very focused around making sure that we are setting up the firm for the next uh medium-term and longer term.
So what are the investments we're making? uh AI, what are the investments we're making in business growth, the momentum so that we're uh putting in the f the firm in the position to have continued improvement in our financial performance.
Now, you've been CEO for just over five years and the stock just with this latest burst has just now exceeded the S&P 500 over your tenure. You've also exceeded the bank index. It's trading at a 17 and a half year high. It's trading above book value.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- bank ceo interview
- citigroup strategy
- bank valuation
- market sentiment
- financial services
Companies and tickers mentioned
- C
- Citigroup
Watch the episode
Watch “Citigroup CEO: 'We're Cheap. Get on the Train.' | At Barron's” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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