Citigroup Explores Acquiring U.S. Regional Bank

Citigroup executives are exploring the possibility of acquiring a major U.S. regional bank or wealth management firm to expand the company's domestic deposits and lending capabilities, according to people familiar with the discussions. The preliminary talks, held in recent months, mark a potential shift for the New York-based lender as it nears the end of a multiyear overhaul to address regulatory concerns.

Senior leaders have discussed targets with approximately $500 billion in assets, including institutions such as Truist Financial in Charlotte, North Carolina, and PNC Financial Services Group in Pittsburgh. Executives have also considered brokerages like Stifel Financial and Raymond James Financial, which could provide access to affluent clients and generate fee income. The goal is to bolster Citigroup's U.S. retail footprint, which currently includes only about 655 branches concentrated in urban areas and holds $89 billion in average deposits in its personal banking unit. This compares to $1.1 trillion in deposits for JPMorgan Chase's consumer and community banking division.

The conversations remain in early stages, with no formal proposal guaranteed. During a meeting with...