May 9, 2008 10:18AM

Citi’s CFO Lays Out How Stock Will Increase

By Donna Fuscaldo

What will make Citi’s stock actually increase is the 800 pound gorilla in the room. Citi’s stock is down 53.7% since 2001. Citi CFO Gary Crittenden is trying to answer that as the presentation portion of the meeting starts to wrap up. (Most companies save the CFO for last to keep analysts and investors at the meeting and interested.) Crittenden says Citi is targeting a 75% efficiency ratio in its global wealth management unit, a 33% efficiency ratio in its global card business and a 54% efficiency ratio in the consumer banking unit. CFO says Citi plans to wind down its legacy assets in its mortgage portfolio.  As for securities and banking, Citi is targeting an efficiency ratio of 65%.   Crittenden reiterated that the cost of credit over the next several quarters will increase because of the deterioration in the credit card business and the residential mortgage business.  Crittenden says the company is targeting an efficiency ratio for the entire company of 58% in two to three years. He says the company over the next three years, including this year, will have a total re-engineering benefit of $15 billion, largely from cost cuts.