Citizens Financial Group, Inc. (CFG – Free Report) unveiled a few developments aimed at accelerating growth of its Wealth Management business to attract new high-net-worth clients. The company’s CEO, Bruce Van Saun, stated that management wants to have more choices for customers in terms of wealth options.
CFG’s long-term strategy involves growth in wealth management offerings, improvement of capabilities in the high-net-worth segment and expansion into key markets.
In October 2023, the company launched the Citizens Private Bank, strengthening its operations in the wealth management space. The Citizens Private Bank offers high-touch client service to high-net-worth individuals, families and businesses. This included private family foundations, non-profit, multifamily and commercial real estate, life sciences, private equity and venture capital firms.
In April 2024, as part of its endeavor to expand that service in addition to its recently-established private bank, Citizens Financial appointed Paul Casey, a veteran of Morgan Stanley, as head of the company’s wealth business.
To attract ultra-high-net-worth clients, CFG strengthened its Citizens Private Wealth franchise by appointing advisory teams in Boston and San Francisco. With an aim to boost profitability in the future, Citizens Financial has hired nearly 220 private-bank workers since 2023.
Strategic Efforts
The company plans to open five to six private banking offices throughout 2024. Initially, offices will be opened in New York City, Boston, Florida and California. It has been hiring experienced personnel across private banking, wealth management and related support businesses to boost growth plans. Management believes that Citizens Private Bank will reach breakeven in the second half of 2024.
Bottom Line
Per a report, the global wealth management market size was valued at $1.25 trillion in 2020 and is projected to reach $3.43 trillion by 2030, registering a CAGR of 10.7%. Rapid demand for alternative investments such as private equity, commodities, hedge funds, real estate investment trusts (REITs) and intellectual property act as the key driving forces of the global wealth management market.
With the bank failures of 2023, it is clear that significant white space exists in the market for a new entrant to fill by delivering best-in-market customer service for Private Banking and Wealth Management clients. Hiring new executives demonstrates the strength of Private Banking and Wealth Management talent that Citizens Financial has been able to attract. The addition of new Private Banking offices will help them deliver the extraordinary service their clients have come to expect.
Price Performance
In the past six months, the stock has gained 26.3% against the industry’s fall of 7.6%.
CFG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks Worth Considering
Some better-ranked bank stocks worth mentioning are Northern Trust Corporation (NTRS – Free Report) and BankUnited, Inc. (BKU – Free Report) .
Northern Trust’s earnings estimates for 2024 have remained unchanged in the past seven days. The company’s shares have gained 3.6% in the past six months. At present, NTRS sports a Zacks Rank of 1 (Strong Buy).
BankUnited’s 2024 earnings estimates have revised upward marginally in the past 30 days. The stock has gained 8.2% in the past three months. Currently, BKU carries a Zacks Rank #2 (Buy).
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