It was March 2022. Fraser was a year and a day into her job. She was the first woman ever to lead a major U.S. bank. And Citi was in a bad spot: Its stock had dropped 15% during her tenure, lagging behind the S&P 500\u2019s 10% growth. It was the only big U.S. bank trading below its book value. There also had been a humiliating blunder in which the bank sent $900 million to the wrong place and struggled to get it back.<\/p>\n
To make matters worse, just hours before Fraser strode onstage for the bank\u2019s first investor day in five years, Citi had suffered another indignity: Two executives had caught COVID, and the entire event had gone virtual. Fraser was forced to deliver her remarks into a camera, eyes trained on a teleprompter in the largely empty auditorium. <\/p>\n
\u201cWe have an urgent need to address the issues that have kept our firm from living up to its full potential,\u201d she said, then spoke bluntly: \u201cIt\u2019s frankly not a surprise that we\u2019ve been outperformed by our peers and that we failed to meet the expectations of our investors.\u201d She vowed to change how the bank was run, instilling crisp decision-making and real discipline on execution and delivering results. <\/p>\n
Unfazed, Fraser ticked through her recovery plan with the ruthless precision of a seasoned McKinsey consultant (she\u2019s an alum). Her vision for Citi: to be the preeminent banking partner for institutions with cross-border needs; a global leader in wealth management; and a valued personal bank in our home market. Anything that didn\u2019t serve these purposes may end up on the chopping block. And the bank\u2019s culture of mediocrity had to change: \u201cGood enough was good enough for far too long,\u201d she said.<\/p>\n
Fraser\u2019s no-nonsense strategy for Citi was a demonstration of the new kind of leadership she was bringing to Wall Street: historical by definition and displaying a vulnerability that bucked the stoic boys\u2019 club culture that had always dominated banking. Here was a CEO who, when I profiled her after her appointment was announced in 2020, talked about empathy, balance, and her desire for a personal and family life\u2014alongside results; one who wore a fuchsia scarf to match her suit. As she told me when we spoke again this April: \u201cI think you can make tough decisions. It does not mean you need to be an asshole.\u201d<\/p>\n
Five years into her tenure, the grades for Fraser\u2019s turnaround plan are in: The new Citi is very much here. In April, Citi logged its highest quarterly revenue in a decade, with all five of its divisions recording gains, led by services and markets. The bank\u2019s return on tangible common equity hit 13.1% in the first quarter, the highest since 2021. Citi stock is up about 83% since Fraser took over as CEO. It has risen 7.8% this year, ahead of rivals JPMorgan Chase, Wells Fargo, and Bank of America, but slightly behind the S&P 500\u2019s 8% growth. And it has largely addressed regulatory reporting issues, and shed management layers and bureaucracy.<\/p>\n VCG via Getty Images<\/p>\n<\/figure>\n \u201cTurnaround\u201d can be a loaded term when it comes to female leaders. The well-documented glass-cliff phenomenon\u2014in which boards turn to women when the cleanup job is exceedingly difficult or impossible\u2014can be a trap for female execs who accept a no-win challenge.<\/p>\n Fraser\u2019s CEO appointment looked at first as though it largely fit that script, but then she flipped it: If she faced any sort of metaphorical precipice, she looks likely to stick the landing. <\/p>\n But the very metrics that vindicate Fraser\u2019s turnaround also raise the stakes for what comes next. Cleaning up a sprawling bank is one job; growing one is another. She now faces the question dogging every CEO who inherits a fixer-upper: Can she shift Citi out of repair mode and into a genuine growth story\u2014one that helps Wall Street believe Citi can lead again?<\/p>\n Citi\u2019s investors had reason to be skeptical in 2022; they had heard promises of turnarounds before. For decades, Citi had tried and failed to shed its reputation as Wall Street\u2019s slacker bank that had long trailed rivals in profitability. The board had tasked Fraser, a Citi veteran with a track record of reviving troubled divisions, with streamlining the bank, which had still not fully dismantled the unwieldy and lumbering financial supermarket former CEO Sandy Weill had bolted together in an ill-advised acquisition spree.<\/p>\n Fraser\u2019s blueprint was classic consultant-style triage\u2014divest the sideshow businesses, simplify the org chart, and redirect capital to the divisions that could actually win. Early on, she funneled Citi\u2019s varied operations into five distinct business lines, flattened its management structure, and began exiting retail banking in 14 international markets. It\u2019s now more specialty grocer than sprawling supermarket.<\/p>\n Mike Mayo, a long-time analyst at Wells Fargo Securities, says this reorganization was the moment Fraser set Citi on the right course. \u201cWhen you look back in 10 years, you\u2019re likely to say this was the most powerful change made at Citi,\u201d he said, praising Fraser for removing bureaucracy and red tape, and eliminating Citi\u2019s mishmash global matrix structure.<\/p>\n Now, Mayo says, \u201cthere\u2019s nowhere to hide.\u201d<\/p>\n Citi director Peter Blair Henry likes to compare Fraser to an elite athlete. He\u2019s an ex-Division I wide receiver himself, and in his telling, the 58-year-old Scottish-born Brit and University of Cambridge graduate is either an NFL quarterback vowing that a 1\u201316 team will make it to the next Super Bowl, or famed Boston Celtic Bill Russell, a legendary player-coach, who could draw up a final play and sink the winning shot. \u201cChampions,\u201d he says, \u201cbelieve they\u2019re going to win. But then they do the work. She\u2019s done the work, and she\u2019s been in the trenches.\u201d<\/p>\n She has indeed: Fraser\u2019s most formative assignment came during the 2008 financial crisis when, as Citi\u2019s global head of strategy and M&A, Fraser executed 25 deals in 18 months to shrink the bank in exchange for much-needed capital. During that period, the bank sold nearly a trillion dollars worth of assets and cut 100,000 jobs. <\/p>\n 83%<\/p>\n Increase in Citi\u2019s value since Fraser became CEO in 2021<\/cite><\/p><\/blockquote>\n<\/figure>\n $215 billion<\/p>\n Citi\u2019s market value in May 2026 Fraser\u2019s McKinsey training gave her the know-how to structure a turnaround campaign; the financial crisis experience gave her the fortitude to pull it off. <\/p>\n \u201cSo many of the things we were selling we were not the right owner of,\u201d she recalls. \u201cThat gave me not only the courage to make tougher decisions but also utter determination that the bank would just be run differently, with discipline, with accountability and focus.\u201d<\/p>\n Fraser says her ability to make a judgment call \u2014 and then, in British fashion, get on with it\u2014is a trait that\u2019s served her well. But just because she has stuck to her guns doesn\u2019t mean all the decisions have been easy or painless. The bank will eliminate 20,000 jobs by the end of this year as part of its turnaround. And the plan involves parting ways with businesses that have been in the bank\u2019s portfolio for decades, such as retail banking in Russia, China, and Mexico.<\/p>\n Some of Fraser\u2019s big-name hires have also come under fire, with allegations of bullying leveled at Citi wealth chief Andy Sieg, whom Fraser recruited from Bank of America, and head of banking Viswas Raghavan, who was reportedly accused of bullying at his previous employer, J.P. Morgan. A former managing director accused Sieg of harassment in a lawsuit filed in January. (Citi has said the lawsuit has no merit and, after an investigation into complaints against Sieg, Citi stood by him. The bank also defended Raghavan as \u201ca proven leader with a well-earned track record for driving results.\u201d)<\/p>\n At times Fraser\u2019s revamping of Citi\u2019s culture has seemed to clash with her efforts to lead what she has called a \u201chuman bank.\u201d <\/p>\n Lately, Fraser has used pointed language to signal a cultural reset. In 2023, she urged employees who weren\u2019t on board with her overhaul to \u201cget off the train.\u201d In January, Fraser told her 226,000 staffers that she would no longer be grading them with A\u2019s for effort; they would be judged on results. \u201cI expect to see the last vestiges of old, bad habits fall away, and a more disciplined, more confident, winning Citi fully emerge in 2026,\u201d she wrote.<\/p>\n That language is in stark contrast with the notes of empathy that she hit around the time she was named CEO. She was candid then about the demands of parenthood \u2014 mentioning that she worked part-time for her entire McKinsey partnership, for example. And she framed her willingness to discuss the personal side of the job\u2014and relate to her team on that level\u2014as an edge she possesses based partly on gender norms. \u201cI can be more vulnerable in certain areas,\u201d she told me in an interview at the time, \u201ctalking more about the human dimensions of this than some of my male colleagues are comfortable [with].\u201d<\/p>\n It would be easy to assume Fraser traded that human touch for gritty pragmatism once she faced the demands of the CEO hot seat. But Fraser has always maintained that both traits can coexist. \u201cEmpathy is not being nice,\u201d she said in an interview at the Stanford Graduate School of Business in February. \u201cIt\u2019s just being thoughtful about the other side of the table.\u201d<\/p>\n Still, it\u2019s not easy to be a fixer who\u2019s also an outlier. Fraser remains the sole woman leading a major bank. \u201cNobody\u2019s going to love you for everything that you do,\u201d says Melissa Fisher, a cultural anthropologist and author of Wall<\/em> Street<\/em> Women<\/em>. \u201cShe\u2019s doing it for a business and for economic reasons, like probably any CEO is in that position, but because she\u2019s the first female to do it, I think she\u2019s being held to a higher standard.\u201d<\/p>\n Fraser acknowledges that her job requires some code-switching: \u201cThere are messages that are appropriate for different times, but it\u2019s still authentic, it\u2019s coming from me,\u201d she says. \u201cI know who I am,\u201d she adds. \u201cMaybe it\u2019s the benefit of there not being as many female leaders around, you know? You have to have a strong sense of self.\u201d<\/p>\n This conviction has been necessary in high-stakes moments, as Citi was criticized by some for rolling back its diversity, equity, and inclusion initiatives. Fraser called that decision \u201chard\u201d and tied it to Citi\u2019s work for the U.S. government, which, during the Trump administration, has cracked down on diversity initiatives among its contractors.<\/p>\n As a global bank, Citi \u201csits on all these fault lines,\u201d says Jon Gray, COO of the alternative asset manager Blackstone. He lists Russia\u2019s invasion of Ukraine; the collapse of Silicon Valley Bank; Trump\u2019s \u201cLiberation Day\u201d tariffs; and the Iran conflict as crises Fraser has had to manage. \u201cNavigating that is very tough, but having somebody like Jane, who\u2019s got this equanimity about her \u2014 incredibly calm, taking a long-term view\u2014that, I think, has been very helpful to their organization.\u201d<\/p>\n Close colleagues and associates say Fraser is a thoughtful ally and reliable friend. <\/p>\n Accenture CEO Julie Sweet recalls being touched when Fraser visited her at home following a mastectomy. \u201cShe just shows up at my house,\u201d Sweet said. \u201cYou know, she talks a lot about empathy, but like, at that moment, I lived that empathy.\u201d<\/p>\n Fraser is also known as a prankster. She once pulled an April Fools joke in which she persuaded her senior management team to sign waivers for a fictional group skydiving outing. <\/p>\n Fraser says the purpose of her jokes is simple: \u201cDon\u2019t take yourself too seriously.\u201d She notes dryly that her team has not yet pranked her back: \u201cThey don\u2019t dare while I\u2019m in this job.\u201d<\/p>\n Ahead of Citi\u2019s investor day this year, on May 7, analysts had framed the event as yet another inflection point for Citi\u2014but this time it wasn\u2019t about a turnaround. Instead, the questions were focused on whether Citi could transition its strategy from fix-it mode to growth.<\/p>\n But the mood in the room at Citi\u2019s Tribeca headquarters was more subdued than expected. Citi had underwhelmed investors hours earlier when it published modest medium-term profitability targets of 14% to 15% return on tangible common equity by 2031. Citi\u2019s stock dropped in premarket trading. <\/p>\n So when Fraser strode onstage, again in a vibrant pink suit, she was in the familiar position of having to sell investors on her plan. This time, at least, she played to a full house.<\/p>\n Citi\u2019s five distinct business units will generate a flywheel effect for clients that would serve each one\u2019s bottom line and fuel higher returns and stronger growth bank-wide, she said. \u201cA client can have their global cash managed by services, currency hedge by markets, a strategic acquisition advised on and financed by banking, and the personal wealth of its executives managed by the private bank, with their spending supported by cards.\u201d <\/p>\n Citi is also investing in AI to increase efficiency. AI-assisted code reviews have already freed up 100,000 hours of capacity per week on Citi\u2019s engineering team, Fraser said. <\/p>\n By the afternoon, Fraser had, once again, won investors over, with shares closing up 1.2% for the day.<\/p>\n The one person Fraser never had to convince about the validity of her turnaround was herself. Years ago, Fraser talked to me about moments of self-doubt; how, for instance, she initially thought she wasn\u2019t good enough for the role of global head of strategy and M&A when it was offered to her. <\/p>\n But the best cure for self-doubt is doing the hard work. \u201cI went out and listened,\u201d Fraser said, to Citi\u2019s people \u2014 investors, clients, regulators, and board. <\/p>\n \u201cSome of that\u2019s uncomfortable. [But] that gave me real confidence in the vision we had to be the preeminent bank for clients with cross-border needs,\u201d she said. \u201cI never had a lack of conviction. This was the right path.\u201d<\/p>\n This article appears in the June\/July 2026 issue of Fortune.<\/em><\/p>\n<\/div>\n #Citis #5year #comeback #CEO #Jane #Fraser #turned #banks #chronic #underperformance #decadehigh #revenue<\/p>\n","protected":false},"excerpt":{"rendered":" In a bubblegum pink boucl\u00e9 skirt suit, Citigroup CEO Jane Fraser must have felt as if she was speaking into a void as she pitched Wall Street, via livestream, on… <\/p>\n","protected":false},"author":1,"featured_media":8479,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[4837,342,369,10588,7279,8707,1432,10590,1075,798,7281,7280,10587,6679,1272,2074,10589,3229],"class_list":["post-8478","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance-news","tag-5year","tag-banks","tag-ceo","tag-chronic","tag-citigroup","tag-citis","tag-comeback","tag-decadehigh","tag-fortune-500","tag-fortune-500-companies","tag-fraser","tag-jane","tag-jane-fraser","tag-most-powerful-women","tag-revenue","tag-turned","tag-underperformance","tag-wall-street"],"_links":{"self":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts\/8478","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8478"}],"version-history":[{"count":0,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts\/8478\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/media\/8479"}],"wp:attachment":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8478"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8478"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8478"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"\"](\"https:\/\/fortune.com\/img-assets\/wp-content\/uploads\/2026\/05\/GettyImages-2276199916.jpg?format=webp&w=1440&q=100\"\/)
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Source: S&P Global Intelligence<\/cite><\/p><\/blockquote>\n<\/figure>\n
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