Citi’s investment banking unit is, to quote the bank’s investor day presentation, adopting a “serial winning mindset” as it continues its push to hire top talent.
The firm’s banking unit has hired 60 managing directors from 20 different institutions since the beginning of last year, Viswas Raghavan, Citi’s head of banking and executive vice chair, said at investor day in lower Manhattan on Thursday. Around half of those hires have been in the US, he added.
“We are attracting the best, and we can get whoever we want,” Raghavan said during a presentation on Thursday. “Going forward, quality of hires over quantity will be our focus.”
Raghavan, who joined the firm in 2024 after more than two decades at JPMorgan, said Citi operates with a leaner deal team than competitors, with fewer managing directors.
Yet the bank is at a “pivot point” and hopes to increase its number of MDs by roughly 15% to extend its coverage reach and boost productivity. Citi will, Raghavan said, “measure and reward those who deliver,” a message that echoes some of CEO Jane Fraser’s January memo about leveling up and getting rid of “old, bad habits.”
In its first-quarter earnings release last month, Citi said operating expenses in its banking unit rose 20% to $1.2 billion, driven partly by higher compensation and head count. Revenues in the banking business grew 15% to $1.8 billion, driven primarily by higher investment banking fees.
In addition to Raghavan himself, the bank has hired several senior dealmakers in recent years, including Pankaj Goel and Alex Watkins from JPMorgan, and David Friedland from Goldman Sachs.
Head count across the firm
Broadly, Citi expects head count to trend downwards this year, former CFO Mark Mason told reporters ahead of last quarter’s earnings call. He tied the cuts to advancements in artificial intelligence, as the firm spent $2.3 billion on technology and communication in the year’s first quarter, according to its earnings presentation. The firm has also been shrinking its sprawling workforce as part of its yearslong transformation program that was born out of a 2020 consent order by regulators to improve its internal controls.
Citi said in Thursday’s presentation that 90% of the transformation effort is at or near the target.
Raghavan named AI as a tool for growth during his presentation on Thursday, saying the technology requires a “mindset shift” and mentioning tools from startups Rogo and Hebbia. Citi’s wealth unit is also investing in new AI tools — last month, the firm unveiled an AI-powered wealth advisor that will launch to certain clients this summer.
Yet, like in banking, the technology doesn’t translate to cuts across the board, executives said on Thursday. Andy Sieg, the head of wealth, said the firm plans to hire more than 400 client advisors and personal bankers, as well as more than 200 small business advisors.