Citigroup is reportedly considering a plan to break up its biggest division in the coming year.

According to the Financial Times, chief executive Jane Fraser is looking to split up the bank’s Institutional Clients Group (ICG) into three separate units representing investment and corporate banking, global markets and transaction services.

Citi’s business is currently split between the Global Consumer Banking which contains Citi’s retail bank and credit cards, and the ICG. Citi previouisly announced plans to separate wealth management from the consumer bank under Andy Sieg, who will join in October from Bank of America.

The FT report – along with a separate report from Reuters – reports that the separated units are set to be run by their current heads who would report directly to Fraser. The revamp would be the most significant corporate structure makeover at Citi in nearly 15 years, and the biggest change in reporting lines since Fraser's ascension to chief executive officer in 2021.

The planned shakeup comes several weeks after ICG boss Paco Ybarra announced his plans to leave Citigroup after 36 years. He will depart by the middle of 2024, with the FT claiming that no replacement is being sought by the bank.

The restructure would leave Citi with three commercial business units and two consumer units all reporting directly into Fraser.

When appointed in 2021, one of the key issues facing Fraser was pressure from US regulators to overhaul Citi's risk management systems.

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