Citigroup (C.N) has dismissed a Bloomberg News report suggesting that its senior executives were considering acquiring a U.S. regional bank. The company labelled the report as ‘baseless speculation,’ firmly stating its focus remains on organic growth. Citigroup is a global financial services company providing a wide range of banking and investment services. Under CEO Jane Fraser, the firm is currently undergoing a multi-year turnaround aimed at streamlining operations and improving profitability.
Bloomberg had reported that Citigroup’s leaders had held preliminary discussions about a potential deal to increase deposits, even raising the concept with U.S. regulators, citing individuals familiar with the matter. However, a Citigroup spokesperson refuted these claims, stating that the bank is not planning to buy any regional bank, wealth brokerage, or other financial services firm. The spokesperson reiterated the company’s commitment to its current strategy and ongoing transformation.
Following the report and subsequent denial, Citigroup’s shares initially experienced some losses but recovered slightly, ultimately trading down 3% in afternoon trading. Meanwhile, an index tracking large-cap banking stocks also saw a decline of 1.8%. Reuters was unable to independently verify the accuracy of the initial Bloomberg report.
Citigroup’s ongoing turnaround, initiated in 2021, aims to simplify the bank’s structure, reduce costs, and improve profitability. Executives are increasingly optimistic about completing compliance work related to regulatory punishments, potentially allowing the bank to focus more sharply on profit growth after several years of intensive compliance efforts.
