Citi's Investment Banking Boss: 'We Can Get Whoever We Want'
Business Insider • • business
Key Points:
- Citi's investment banking unit is adopting a "serial winning mindset" and has hired 60 managing directors from 20 institutions since early last year, with about half of these hires in the US, focusing on quality over quantity.
- The bank plans to increase its managing director count by roughly 15% to expand coverage and productivity, emphasizing performance-based rewards aligned with CEO Jane Fraser's push to eliminate outdated practices.
- In Q1, Citi's banking unit saw a 20% rise in operating expenses to $1.2 billion due to higher compensation and headcount, while revenues grew 15% to $1.8 billion, driven mainly by increased investment banking fees.
- Despite a general firmwide headcount reduction tied to AI advancements and a multi-year transformation program, Citi's wealth unit is investing in AI tools and plans to hire over 600 advisors across client, personal, and small business segments.
- Citi views AI as a growth enabler requiring a mindset shift, integrating technologies from startups like Rogo and Hebbia, while maintaining targeted hiring to support business expansion rather than broad workforce cuts.
