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Paco Ybarra, Citigroup’s investment banking head and leader of the bank’s biggest business unit, is to leave the company in the most significant management departure since Jane Fraser became chief executive more than two years ago.
Ybarra, a 36-year veteran of Citi, joined the bank as a junior manager in Madrid before climbing the ladder to become head of debt trading. In 2019, Citi’s then-chief executive Michael Corbat named him as head of Citi’s large institutional client group, which also includes the bank’s transaction services business.
Ybarra, 61, said the decision to leave was his own and followed a period of discussion with Fraser. He said they had recently come to the conclusion that it was the right time for him to move on.
“This is my retirement from Citi, but I don’t plan to disappear,” Ybarra told the Financial Times. “I don’t think I am just going to play golf, but I don’t know what is next.”
The move comes shortly after Citi announced a number of senior management changes, including a significant hire in wealth management, Andy Sieg from Bank of America. It also comes as Fraser is restructuring the bank.
Citi’s profits fell in the second quarter and, along with Goldman Sachs, it was one of the few large US banks that reported a decline in year-on-year profits for the period.
Citi has not named a replacement for Ybarra, and has not said if it will. The move could allow Fraser to streamline upper management, something she has signalled she would like to do, potentially removing a layer between her and a number of Citi’s key business units.
Ybarra will stay with the bank to help with the transition and plans to leave at some point in the first half of next year.
“I think we have done a very good job in executing on our strategy to simplify and focus the business on key areas,” Ybarra told the FT. “I am sticking around to be part of those discussions about the future leadership of Citi’s institutional business but I don’t know what the result of that will be.”
Fraser announced the departure internally on Thursday in a memo to employees, which was seen by the FT. Fraser said in the memo that no decision had been made on what the new leadership of Citi’s large commercial client business would be, or how it would be structured.
“I expect that we’ll complete our assessment and be in a position to share decisions with you in the coming months,” Fraser wrote. “In the meantime, I know Paco and his leadership team will remain fully focused on delivering our priorities and serving our clients with excellence.”
Of Ybarra, Fraser said, “Those of us who have the privilege of working with Paco admire his humbleness, curiosity and incredibly sharp instincts. Personally, I deeply value his counsel and partnership, especially during my early days as CEO as we worked to develop a bold vision for Citi.”
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