Jean MartinCitigroup appointed Viswas Raghavan as its new head of banking from JPMorgan Chase, where there has been a management reshuffle and business reorganization, according to the banks’ memos seen by Reuters on Monday.
Raghavan will report to Citigroup CEO Jane Fraser and is expected to join in the summer, Fraser wrote in an internal memo.
Raghavan’s Background and Previous Role:
Raghavan most recently served as JPMorgan’s head of global investment banking.
According to a bank memo, JPMorgan named Doug Petno and Filippo Gori as co-heads of global banking, reorganizing the business as it announced Raghavan’s departure.
Recent Developments at JPMorgan and Citigroup:
In January, JPMorgan shuffled executives in its investment banking and consumer units, giving them more experience running different businesses as Wall Street focuses on succession plans for CEO Jamie Dimon.
Meanwhile, Citigroup is going through its largest reorganization in decades, streamlining its structure into five main businesses whose leaders report directly to the CEO.
Industry Analysts’ Perspective:
Raghavan is a “proven leader, and his appointment is another example of our ability to attract the best talent to our firm,” Fraser wrote.
“This is a core change with positive chain reactions throughout the firm; in our view, Citi is dropping outdated management structures that go back decades,” Mike Mayo, analyst at Wells Fargo, said in a note, adding that hiring Raghavan shows additional effort to restructure.
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Fraser has brought in new leadership to help with the overhaul, including Andy Sieg, who joined from Bank of America to run the wealth division in September.
Citi will also reduce its workforce by 20,000 in the next two years.
Raghavan’s Previous Role and Revenue Performance:
Raghavan was recently promoted to head of global investment banking at JPMorgan after serving as a co-head since 2020. He previously led investment and corporate banking in Europe, the Middle East, and Asia.
Revenue at Citi’s banking division rose by 22% to $949 million last quarter. At JPMorgan, corporate and investment banking revenue increased by 3% to $11 billion, while commercial banking revenue increased by 7% to $3.7 billion in the fourth quarter.
New Structure at JPMorgan:
At JPMorgan, the new structure will merge commercial, corporate, and investment banking under one division called global banking.
Petno, 59, has run commercial banking since 2012. In addition to serving alongside Petno as co-head of global banking, Gori will also become CEO of the Europe, Middle East, and Africa region.
