A day after announcing disappointing yet profitable earnings results, Citigroup said that John Havens, currently CEO of the Institutional Clients Group—Citi’s investment bank—will become the bank’s president and chief operating officer.
In his new role, Havens (pictured at left) will be responsible for Citi's day-to-day operations and report to Chief Executive Officer Vikram Pandit, who announced the changes to Citi's management structure.
This will be the first time since 2007 that Citigroup has a COO, when Robert Druskin left the bank. Also for the first time since 2007, Citi on Tuesday reported annual profits in its end-of-year earnings statement, released along with the bank’s fourth-quarter 2010 earnings. Annual earnings were posted at $10.6 billion, or $0.35 per share, while quarterly earnings came in at $1.3 billion.
The bank cited lower losses on troubled loans and poor investment banking results, reporting earnings per share of $0.04—which disappointed analysts’ expectations for EPS of $0.08. Citigroup reported a $0.33 loss in Q4 2009 but saw profits in every quarter of 2010.
Within the Institutional Clients Group (ICG), James A. Forese, currently the co-head of Global Markets, will take on new responsibilities and become the CEO of Securities and Banking, according to a Citigroup news release.
Ned Kelly, currently a Citi vice chairman, will assume a new role as chairman of the ICG. Francesco Vanni d'Archirafi will continue as CEO of Global Transaction Services. They will all report to Havens, as will the regional CEOs of Europe, the Middle East and Africa, the regional CEOs of Asia Pacific, and the heads of certain global functions.
“John Havens is one of this company's strongest managers and best leaders,” Pandit said in a statement. “He's been indispensable to the turnaround of Citi. This role will take advantage of the full range of his management talent and experience, and will allow all of us to sharply focus on executing our plans for the future. Our strategy is working, as our full-year earnings and four straight quarters of profitability demonstrate. This new management structure will serve the company well as we aim to enter into a new phase of responsible and sustained growth."
Read about Citigroup’s Q4 2010 earnings report at AdvisorOne.com.