Citi Ready To Stop 'Destroying' Shareholders, Which Is Nice
NEW YORK (TheStreet) -- Citigroup's(C) new CEO Michael Corbat will set key metrics in the coming months for the bank in an effort to be more accountable to shareholders and stop "destroying" shareholder value.
In a conference call with analysts, Corbat said the bank will develop metrics such as operational efficiency, return on assets and return on tangible equity for various segments and geographies in the business.
Measuring Citi's businesses against those metrics will help the bank better decide "where we want to be and how we use our resources," the CEO said.
Citigroup is in the midst of a broad restructuring effort under Corbat, who replaced former CEO Vikram Pandit in October.
The company said in December that it will lay off 11,000 employees, shut branches and exit low return markets to generate savings of $900 million in 2013 and $1.1 billion in 2014.
Corbat isn't finished however and the new management has made clear that making the bank more efficient is high on its priority list.
"We have got to come to a point when we stop destroying shareholders' capital," Corbat said in the question and answer session following a presentation to analysts.
Corbat was responding to a question from CLSA analyst Mike Mayo as to what he would like to have achieved as CEO five years from now.
He reiterated that providing good returns to shareholders was a primary goal for Citigroup and that the bank will strive to efficiently allocate capital and resources to businesses, while having a social purpose.
Citi will explore many ways to boost returns to shareholders he added. When asked if he had a target stock price in mind, Corbat said he will look at all the metrics out there, but that that was something to keep in mind.
Shares of Citigroup are down 85% in the last five years, so Corbat has his task cut out for him.
-- Written by Shanthi Bharatwaj in New York.