Renowned commercial bank Citigroup (NYSE:C) is planning to divest itself of some of its businesses to boost profitability amid its declining financials. But will this strategy allow the company to maintain its position as a top player in the banking space? Read more to find out.Citigroup, Inc. (C) is one of the largest U.S.-based global banks, with a presence in nearly 160 countries. It has more than 200 million customers worldwide and has been recognized by Euromoney as the Best Bank for Corporate Responsibility in Asia. Also, C won the Celent’s Model Bank 2021 Award for Commercial Payments, on the strength of its recently launched payments solutions—Citi Global Collect and Citi Global Instant Payments.
However, C’s financials have been affected significantly by the continuing low-interest environment, reducing its profit margins substantially.
As a result, despite being a renowned bank with a market capitalization of more than $147 billion, C’s 11.37% trailing-12-month ROE is 9.1% lower than the 12.51% industry average.