Citi’s Transformation Under Jane Fraser Leads to Stronger Financial Results

NEW YORK, July 18, 2025 — Citigroup‘s recent financial success reflects significant changes implemented under CEO Jane Fraser‘s leadership. Over the past two years, Fraser has overseen a major restructuring aimed at simplifying operations and improving profitability across the bank’s geographical and business segments.

Citi, previously known for its vast consumer franchises worldwide, has shifted focus after the 2008 financial crisis. Following the crisis, banks faced stricter capital and liquidity requirements, making it challenging to operate across multiple regions. Fraser’s efforts have strategically narrowed Citi’s focus to core areas such as institutional needs and US personal banking, moving away from its earlier broad approach.

As a result of Fraser’s decisive actions, Citi reported a net profit of $12.7 billion for 2024, a 37% increase from the previous year. Total revenues reached $81 billion, the highest since 2010. Fraser attributes this shift to a ‘deliberate journey’ focused on bold decisions, investment in critical areas, and a commitment to change the bank’s culture.

Fraser, who took on the CEO role in 2021 as the first woman to lead a major US bank, highlighted the importance of communication during the transition. She engaged with clients, investors, and a diverse range of employees to gather insights and understanding. ‘Our folk here are not shy about telling you what you need to do when you ask them,’ Fraser said.

In addition to restructuring, Fraser’s initiatives included a reorganization dubbed ‘Project Bora Bora.’ This effort removed multiple management layers, streamlining operations to improve efficiency. The reorganization saw about 50,000 staff reporting to different managers, allowing more flexibility and focus on core business areas.

Despite the strides, challenges remain. Fraser acknowledged that while significant progress has been made, the transformation is ongoing. Citi continues to manage risks associated with credit losses in its retail banking segment, which remain elevated due to macroeconomic pressures, yet manageable.

The bank is also preparing for an initial public offering (IPO) of its Mexican unit, Banamex, expected later in 2025. However, leveraging technology remains a top priority. Fraser noted the importance of modernizing back-office systems to prevent errors and increase efficiency amidst a constantly evolving banking landscape.

In the first half of 2025, Citi successfully retired or replaced 211 legacy technology applications. ‘We can see it delivering better outcomes and starting to improve efficiency,’ Fraser reflected, indicating a shift toward a culture of innovation and focus.

Looking ahead, Fraser remains optimistic about Citi’s trajectory. ‘We are not done and we’ve still got a way to go,’ she said, reinforcing the focus on teamwork and collaboration among different business sectors within Citi, emphasizing that this synergy is essential for reaching the bank’s full potential.