Peter Charrington, Citigroup’s global head of private banking and a 26-year veteran of the New York-based bank, is set to depart in order to spend more time with his family and explore new opportunities, according to a company memo seen by Fastinform.
Charrington will “assist in ensuring a smooth transition of responsibilities” before his departure, Citi Institutional Clients Group CEO Paco Ybarra said in a memo to employees dated Thursday.
The Citi veteran began his career at Citi Private Bank in 1994 as a management associate and was named global head of Citi Private Bank in 2014. He was tasked with overseeing Citi’s private banking operations in North America, Asia, Europe, the Middle East and Africa, and Latin America. He succeeded Mark Mason, who is currently the chief financial officer for Citi.
“Having spent my entire career in the Private Bank, working across Europe and most recently as CEO in North America, I am honored and humbled to accept the role of Global Head of Citi Private Bank,” Charrington said at the time. “We have an incredible group of talented individuals around the world delivering the highest quality wealth management services for the world's most sophisticated ultra high net worth and law firm group clients.”
Before he took up his current role six years ago, Charrington was the CEO for Citi Private Bank in North America, responsible for leading the private banking activities of ultra-high net worth and high net worth clients and Citi’s Law Firm Group in 24 offices across the U.S. and Canada. He took up this position following Citi’s sale of the Smith Barney brokerage business to Morgan Stanley in 2009, which shifted Citi Private Bank’s focus to ultra-high net worth clients with at least $25 million.
Prior to that role, he was the global market manager of the private bank unit for the U.K., Greece, Israel and Monaco. In 2007, he was also named acting interim CEO of EMEA.
Citi’s private banking arm advises the world’s wealthiest individuals and families on everything from trust and estate planning and portfolio management to art, aircraft, and sports advisory and finance. The unit has around $500 billion in total client business and serves clients across 50 cities in over 100 countries.
In the first nine months of the year, revenue from the business increased 8.8%, to $2.84 billion, compared to last year’s comparable period. In the third quarter, Citi Private Bank reported a revenue of $938 million, which was an increase of 8% from last year’s third-quarter result. The uptick was due to “increased capital markets activity, improved managed investments revenues as well as higher lending and deposit volumes, partially offset by lower deposit spreads,” Citi said.
Charrington’s departure comes after Citi Chief Investment Officer David Bailin said in a midyear outlook report that wealthy clients of the firm’s private bank are holding way too much cash. The report, which was published in June, found that some clients “routinely” hold as much as 35% of their core portfolio in cash. The bank plans to help clients seek various opportunities to put their cash to use and generate yield, as well as diversify portfolio risks, the report said.
“The COVID collapse and policy response have profoundly affected our strategic return estimates, asset allocation strategy, portfolio construction, and tactical market recommendations,” Bailin said in the report. “We are entering a new economic cycle and this demands a new approach to investing.”