Citigroup Inc. (C), the third-largest U.S. lender, said Manuel Medina-Mora will add responsibility for global consumer and commercial banking and Mike Corbat will become the sole chief executive officer for Europe, the Middle East and Africa as part of a management shakeup.
Mark Mason will replace Corbat as head of Citi Holdings, the division created to manage and sell more than $600 billion of unwanted assets, according to a staff memo today. Mason had been chief operating officer at the unit.
The management overhaul is one of the largest at the New York-based company since Vikram Pandit became chief executive officer in 2007. The moves reflect Pandit’s strategy of pursuing more revenue in emerging markets in Asia and Latin America in the face of sluggish U.S. economic growth while offloading unwanted assets in Citi Holdings.
“It highlights that Citi Holdings is increasingly being put behind Citigroup and the focus going forward is all about growth in these international areas,” Richard Staite, an analyst in London with Atlantic Equities LLP, said in a phone interview. “I should expect global consumer and commercial banking to be prioritized over the riskier aspects of the investment bank.”
Medina-Mora, 61, has been appointed CEO of global consumer banking, reporting to Pandit. The role gives him “line responsibility,” meaning that heads of consumer banking in different regions around the world report to him, as well as reporting to that region’s CEO.
Regional Consumer Banking
Citigroup’s regional consumer-banking business posted revenue of $24.4 billion for the first nine months of this year, up 1 percent from the same period last year. The securities and banking unit had $18.2 billion in revenue and transaction services had $7.9 billion.
Medina-Mora was previously head of consumer banking for the Americas and has led the firm’s pursuit of profit in emerging markets. Javier Arrigunaga, the bank’s new CEO of Mexico, and Francisco Aristeguieta, appointed head of Latin America, will report to Medina-Mora, according to the memo.
“These important changes speak to the globality, focus on clients, and development of leaders which are at the core of our firm,” said the note, signed by Pandit, 54, and COO John Havens, 55.
Stephen Bird will become sole CEO of Asia Pacific and report to Havens, according to the memo. Bird’s former co-CEO Shirish Apte will become co-chairman of Asia Pacific banking, Pandit and Havens said in the memo.
Pandit Splits Bank
Corbat, 51, will report to Havens in his new role. He replaces former co-heads of Europe, Middle East and Africa Bill Mills and Alberto Verme, according to the memo. Mills has been appointed CEO for North America and will report to Havens and Alberto Verme becomes chairman of banking for the region.
Pandit split the bank into Citicorp and Citi Holdings after the lender’s $45 billion bailout in 2008. He charged Corbat with disposing of some of the bank’s most toxic assets and investments. Corbat’s unit has sold or wound down more than $300 billion of assets since he took the post.
Pandit said Oct. 17 that he intends to keep the retail partners cards unit, one of the largest businesses that was left in Citi Holdings. Corbat’s replacement, Mason, takes over as the bank is still trying to sell CitiFinancial, a consumer finance lender.
“Mike has done a great job over the last several years managing Citi Holdings,” Pandit and Havens said in the memo. “Upon the transfer of retail partner cards to Citicorp, Holdings assets will comprise only 13% of our balance sheet.”
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