Citi's Raghavan Is Contender to Succeed CEO Fraser

Core Insights - Citi Investment Banking head Biz Raghavan is a potential candidate to succeed current CEO Jane Frazier, having energized the division and improved M&A advisory rankings since his arrival [1][4] - Citigroup has shown signs of turnaround, becoming the best-performing large US bank stock in 2023, with expectations to finish fourth in financial advisory rankings [5][8] - The challenge for Raghavan will be to elevate Citigroup into the top three investment banks, competing against established players like Goldman Sachs, JP Morgan, and Morgan Stanley [6][7] Company Performance - Citigroup faced significant challenges at the end of 2023, including a major restructuring that involved cutting 20,000 jobs [4] - The bank's focus has shifted towards wealth management and commercial banking, aiming to improve return on equity, which is currently in the single digits [8] - Analysts are optimistic about Citigroup's trajectory if the turnaround continues, despite current underperformance compared to peers over the past five years [10][12] Leadership Dynamics - Raghavan's potential succession is complicated by the fact that both he and Frazier are of similar age, making it uncertain how succession planning will unfold [9][11] - Jane Frazier is four years into her tenure as CEO, and her continued success could delay any leadership transition [10][11] - The banking industry often sees longer tenures for successful CEOs, which may impact Raghavan's chances of becoming the next CEO [10][12]