Citigroup Overhauls US Banking Unit, Announces CFO Transition
Bank to merge retail banking with wealth division and spin off consumer cards as standalone business, continuing its strategic simplification.
Citigroup Inc. (NYSE: C) announced a significant overhaul of its U.S. Personal Banking division and a planned transition for its Chief Financial Officer, continuing a multi-year strategy to streamline the financial giant and boost its returns.
In a move that further reshapes its consumer operations, the bank will integrate its retail banking arm into its wealth management business. Concurrently, its U.S. Consumer Cards division, which includes its branded cards and retail services, will be established as a standalone business. The changes were accompanied by the news that CFO Mark Mason will step down in March 2026, transitioning to a new role as Executive Vice Chair.
Investors reacted positively to the strategic pivot, with Citigroup shares gaining 2.6% in the trading session following the announcement. The move is the latest step in a broad transformation led by CEO Jane Fraser, who has focused on simplifying the bank's structure and exiting non-core international consumer businesses to improve profitability.
Under the new structure, the U.S. Retail Banking operations will merge with the Wealth division, led by Andy Sieg. This integration aims to create a more unified client experience, consolidating tiers from Everyday Banking to Citigold Private Client under a single umbrella. Pam Habner, a veteran of the bank's cards business, will lead the newly independent U.S. Consumer Cards unit and will report directly to Fraser, joining the firm's Executive Management Team.
The leadership succession plan will see Gonzalo Luchetti, the current Head of U.S. Personal Banking, take over as CFO in March 2026. Luchetti is credited with a successful tenure in his current role, where his division delivered twelve straight quarters of positive operating leverage. This track record was a key factor in his selection to succeed Mason, who has been a central figure in navigating the bank through its complex restructuring.
Analysts view the changes as a logical progression of Fraser’s turnaround plan. The restructuring is designed to sharpen the focus on two key areas: the high-growth potential of wealth management and the consistent revenue generation of the massive U.S. cards business. By separating cards, the bank gives the highly profitable segment more autonomy and direct oversight from the top. Meanwhile, integrating retail banking into the wealth unit could create a more effective pipeline for converting mass-market banking customers into more lucrative wealth management clients.
The bank's stock has reflected growing investor confidence in the long-term strategy, rising over 50% in the past year. Despite this rally, Citigroup's stock still trades at approximately 0.91 times its book value, a discount compared to many of its Wall Street peers, suggesting that investors are still waiting for the transformation to fully translate into higher returns.
Citigroup has an analyst consensus price target of around $114, according to data from getMarketData, implying further upside from its current price of approximately $97.63. The firm's ongoing simplification has been a key theme for analysts, who see the cost-cutting and streamlined focus as primary drivers for future earnings growth.
In a statement, CEO Jane Fraser noted the timing of the changes is intended to position the next generation of leaders well ahead of the bank's next Investor Day and reflects momentum toward its 2026 financial targets. The moves signal a commitment to completing the strategic overhaul and position Citigroup to compete more effectively against its rivals in the evolving financial landscape.