Should Citigroup’s (C) $80 Billion BlackRock Partnership Prompt a Closer Look at Its Wealth Ambitions?

• Citigroup announced it will entrust approximately US$80 billion of its global wealth client assets to BlackRock through a new customized portfolio offering, expected to launch in the fourth quarter of 2025 pending regulatory approvals.
• This partnership combines Citigroup's advisory capabilities with BlackRock's investment management and technology expertise, marking what the companies describe as the largest agreement of its kind in the wealth management sector.
• We'll examine how this scale of collaboration with BlackRock may enhance Citigroup's global wealth management strategy and competitive positioning.

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Citigroup Investment Narrative Recap

To own Citigroup, you need to believe it can successfully grow wealth management, expand fee-based services, and execute its technology transformation to capture more share in global banking. The BlackRock partnership underscores Citi’s drive to scale its wealth platform and diversify revenue, though it does not yet materially alter the top short-term catalyst: driving margin improvement through operational efficiency. Regulatory pressures and ongoing transformation costs remain the most significant risks and are largely unchanged by this news.

Another recent announcement that stands out is Citi’s extension of its long-term cooperation agreements with Banco de Chile, signaling a focus on deepening global connectivity. While this supports Citi’s business simplification efforts and strengthens key international relationships, it aligns more with longer-term efficiency catalysts rather than immediately shifting revenue or margin dynamics.

Yet, investors should also weigh the risk that, despite major partnerships, Citi could still face headwinds from regulatory complexity and...

Read the full narrative on Citigroup (it's free!)

Citigroup's narrative projects $95.3 billion revenue and $17.1 billion earnings by 2028. This requires 9.4% yearly revenue growth and a $4.2 billion earnings increase from $12.9 billion currently.

Uncover how Citigroup's forecasts yield a $101.55 fair value, a 4% upside to its current price.

Exploring Other Perspectives

Compared to the consensus, the most optimistic analysts saw Citi’s revenue rising to US$91.3 billion by 2028 if investments in wealth management and modernization paid off. However, these views assume operational progress continues uninterrupted and may shift in light of new developments like the BlackRock deal. Before deciding, consider that perspectives can vary widely based on which risks and opportunities you think will matter most.

Explore 12 other fair value estimates on Citigroup - why the stock might be worth 22% less than the current price!

Build Your Own Citigroup Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Citigroup research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free Citigroup research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Citigroup's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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