How Citigroup Plans To Boost Revenue

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Citigroup, Inc. | C

Financials – Diversified Financial Services | July 13th BMO 

Citigroup’s CEO Michael Corbat has taken a number of steps to boost the Investment Bank’s revenue. His next target: France. Citigroup is set to release their FQ2’18 earnings Friday morning before the market opens. The Estimize community predicts Citigroup’s Revenue to amount to $18.6B, projecting 4% revenue growth (YoY).

In light of the uncertainty surrounding Brexit, French President Emmanuel Macron is courting companies to expand their European operations in Paris as opposed to London by promising to cut taxes and reduce regulations— so far it’s paying off. Citi has made moves to add dozens of senior level bankers to their Paris operations, including two prominent bankers tapped from the UBS Group. Gregoire Haemmerle is set to become head of Citigroup’s French corporate and investment banking unit, while Pierre Drevillion will become head of French M&A. Citigroup’s intent is to bolster revenue by expanding their investment banking divisions throughout Europe, adding hundreds of positions throughout the region.

The move comes as Citigroup’s investment banking revenue fell 7% last quarter (YoY) to $1.325B. The Estimize Consensus predicts investment banking revenue to continue to dip next quarter to $1.28B, reflecting a 14% dip (YoY). With falling revenues, Citigroup is hoping to reposition itself with a stronghold in the European market in order to rebound in the coming quarters.