Citi’s Sweeping Changes to Wealth Unit Still a Work in Progress

There’s a changing of the guard happening in Citigroup’s wealth management division.

Overhauling the $515 billion wealth arm at America’s fourth-largest bank was a top priority for CEO Jane Fraser when she took the position in 2021 — and no easy feat. Let’s say it’s still a work in progress, as the arm has gone through quite a bit of turnover as of late. 

Where’d Everybody Go?

In addition to last week’s news — Shobhit Maini, Citi’s head of digital assets for its markets unit, left after being with the bank for 14 years — at least 33 senior executives have exited the wealth unit under the leadership of new head Andy Sieg, according to Business Insider. Seventeen of the executives had been with the bank for at least 15 years and included folks like Naz Vahid, who led one of Citi’s more successful operations that caters to law firm partners, and David Bailin, who was the wealth division’s chief investment officer. Don Plaus, formerly of Bank of America, was hired as head of North America for Citi’s private bank, but he left after just four months for personal reasons, Reuters reported.

However, one of Sieg’s goals is new leadership, so there is also a huge opportunity. Merrill Lynch veteran Keith Glenfield was hired as head of investment solutions, and Dawn Nordberg, formerly of Morgan Stanley, is now head of a new client engagement group.

Citigroup declined to comment on the record.

Cleaning House. In 2023, Citi tapped Merrill Lynch’s Sieg to reinvigorate its wealth division — which, by the end of that year, had generated $1.7 billion in revenue, down 3% year-over-year. In a review of an internal audit, Barron’s noted some not-so-reassuring aspects of Citi’s wealth unit:

• The wealth arm manages just 13% of its clients’ $6.2 trillion collective net worth, when the industry average is 64%. 
• The audit also said that “opening an account at Citi is a cumbersome process that spans multiple days,” and that the bank’s business receives 20,000 monthly complaints.

In addition to all the layoffs and resignations, Citi’s wealth unit recently announced plans to sell its trust administration and fiduciary services business. That move comes in the wake of Citi selling its international retail banking businesses and closing its municipal securities business. It feels like Citibank has jumped on the Marie Kondo bandwagon.