Citigroup (C) Morgan Stanley US Financials, Payments & CRE Conference 2024 summary

Leadership and strategic vision

• New leadership team assembled, including hires from major competitors and internal promotions, to drive transformation and rigor.

• Focus on building a unified, global wealth management business, leveraging Citi’s brand, client franchise, and talent.

• Four guiding themes: expense discipline, growth in investments, improved client experience, and unified global operations.

• Leadership changes aim to connect product, technology, and operations for scalable growth.

• The business is positioned as a magnet for top industry talent, with ongoing efforts to fill key roles.

Operational and financial performance

• Net new investment assets set as the primary performance metric, with leadership closely monitoring progress.

• New segment reporting has made business returns more transparent, revealing past underperformance and driving urgency for change.

• Expense base is being reduced through consolidation, focus on core activities, and streamlining non-core initiatives.

• Advisor productivity is a key lever, with efforts to increase the proportion of high-performing advisors.

• Near-term progress will be visible in quarterly results, especially in expense reduction.

Growth strategy and revenue outlook

• Targeting high single-digit to low-teens revenue growth in wealth, with medium-term expectations at the lower end and potential for double digits over time.

• Revenue growth to be driven by organic asset flows, scaling alternative investments, and optimizing deposit pricing.

• Focus on deepening relationships with existing clients, especially those with significant assets held elsewhere.

• Technology investments are ongoing, with emphasis on better leveraging existing spend and integrating wealth with broader bank platforms.

• Pre-tax margin target of 30% by 2026, with initial gains from expense reduction and further expansion from revenue growth.