Jane Fraser, CEO of Latin America at Citigroup Inc., smiles at the Milken Institute Global Conference in Beverly Hills, California, USA, on Monday, April 29, 2019. The conference brings together leaders in business, government, technology, philanthropy, academia and the media to discuss effective and collaborative solutions to some of the most important issues of our time. Photographer: Kyle Grilot / Bloomberg via Getty Images
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Citigroup CEO Jane Fraser called her first Investors Day conference a success, despite continued skepticism and unconvincing reactions from analysts covering the bank.
Fraser told CNBC’s David Faber in an interview Thursday that while it will take “several years” to achieve its return targets, investors will see revenue growth from its efforts “sooner or later.” The interview was broadcast on “Crackling in the Street”.
Asked how long Citigroup will continue to trade well below its book value, Fraser received the following answer: I realized, “she said.
Fraser, who began as CEO of Citigroup a year ago, held her inaugural investment conference on Wednesday. It was almost a full day in which Fraser and her deputies presented their vision of a simpler, more profitable institution focused on the bank’s strengths in global corporate banking and payments.
But some analysts were disappointed that Fraser had set a medium-term return target of 11% to 12%, saying it was difficult to recommend Citigroup shares because it would take several years to reach even that modest level. Two analysts downgraded the bank after the event.
“ROTCE’s uninspiring 11-12% medium-term target is simply not high enough to deserve a recommendation for overweight in the short term,” John Heigerty of Atlantic Equities said in a note Thursday.
Citigroup, which is traditionally the most global of major US banks, has 200 employees who continue to work in Ukraine despite Russia’s war there, Fraser said. They help customers with wages, supply chains and food, she said.
“I don’t think anyone knows how long it can last,” she said.
Meanwhile, both Citigroup and its customers are working to release their financial exposures to Russia, she said.
“There’s going to be a lot of relaxation,” she said.
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