By AIM · AIM Media House
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.
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