How Will Citi Use AI for Growth?

Citigroup CFO Gonzalo Luchetti said the bank is entering a new growth phase after spending the last four years restructuring its operations, simplifying its business, and improving profitability.

In an interview with Brazil Journal, Luchetti said Citi is now focused on expanding market share and reaching a return on tangible common equity (RoTCE) of 14% to 15% between 2029 and 2031.

“We were playing in defense,” Luchetti said. “We had to focus on internal reorganization. But now I think it’s clear that we’re playing on the attack.”

The comments come as Citi continues trying to close the profitability gap with larger U.S. banking rivals including JPMorgan Chase, Bank of America, and Wells Fargo.

According to Citi’s Q1 2026 earnings release, the bank reported a RoTCE of 13.1% during the quarter, up from 8.8% in 2025 and 4.9% in 2023.

The bank’s stock has also rebounded sharply. Shares have risen about 70% over the last 12 months and nearly 180% over the last three years, according to figures cited in the interview.

Still, Citi continues to trade below some peers on valuation metrics. Luchetti said the bank’s shares remain “cheap” despite recent gains and pointed to investor confidence in Citi’s turnaround strategy under CEO Jane Fraser.

Citi outlined its long-term profitability targets during its 2026 Investor Day presentation, where executives emphasized operational simplification, expense discipline, and growth in its institutional and wealth businesses.

AI Becomes Part of Citi’s Productivity Push

Luchetti said artificial intelligence is becoming a broader operational tool across the bank, both for employee productivity and customer-service operations.

“We are democratizing access to AI within the company in a secure way, training teams, creating adoption goals,” he said.

Citi employs roughly 239,000 people globally. Luchetti compared the bank’s AI rollout to the productivity gains created by personal computers during the 1980s and 1990s.

Large U.S. banks have increasingly tied AI deployment to operational efficiency, customer-service automation, and software productivity.

JPMorgan Chase CEO Jamie Dimon has also said AI will affect every function across the bank as financial institutions expand AI use beyond pilot projects into core operations.

Luchetti said Citi recently launched an AI-powered system that transcribes customer-service phone calls in real time to help agents respond more efficiently.

“If the call is not so clear because the customer is on a cell phone, for example, the attendant does not need to ask to repeat it,” he said.

The bank is also expanding AI use in cybersecurity, where Luchetti said the technology can help anticipate threats faster than traditional systems.

Banks across the sector are increasing AI investment in fraud detection, transaction monitoring, and cyber defense as digital financial activity grows.

Global Network Remains Core Strategy

Luchetti repeatedly pointed to Citi’s presence in 94 countries as one of the bank’s main competitive advantages.

“If a company needs to change its supply chain, Citi can support it in an agile and effective way,” he said.

The bank has continued positioning its international network as a differentiator for multinational corporate clients navigating geopolitical instability and shifting supply chains.

Reuters reported earlier this year that Citi’s leadership changes and business reorganization reflected a stronger focus on expanding corporate banking and growing client relationships after several years centered on restructuring efforts.

Luchetti said Citi still has “something to prove” to investors, but added that the bank is now operating from a stronger position than it was four years ago.

“We are working to build our credibility and market confidence,” he said.