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How Citizens Financial positioned itself to scoop up private bankers from First Republic

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How Citizens Financial positioned itself to scoop up private bankers from First Republic

Good morning. I think it’s safe to say we’ve all heard a quote or anecdote about the benefits of always being prepared for an opportunity. I’ve found that philosophy to be true, and I think Citizens Financial Group provides a tangible example.

Citizens, headquartered in Providence, R.I., has $222 billion in assets as of Dec. 31, and is the 14th-largest bank in the U.S. I recently had a conversation with John F. Woods, vice chair and CFO at Citizens, for the latest edition of Fortune’s Future of Finance series.

“For a number of years, one of our strategic objectives has been to be able to serve high-net-worth individuals,” he told me. “We did that a while back when we acquired a company called Clarfeld. That created capabilities to provide advice to the high-net-worth customer segments. But we had been unable to scale that platform because of the need to have enough bankers to interact with this customer segment. The opportunity arose when First Republic started to get into trouble last spring.”

First Republic Bank was closed by the California Department of Financial Protection and Innovation on May 1, 2023, with the FDIC appointed as receiver.

“We had an opportunity to bid on acquiring First Republic,” Woods explained. “We didn’t win that bid—JPMorgan did. However, as part of that process, we became very attracted to the business model at First Republic. And a lot of the private bankers who worked at First Republic didn’t want to work at a very large bank—that’s the reason they worked at that bank in the first place.”

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The conversation with a handful of people accelerated to about 150 people hired as private bankers to work in California, Boston, New York, and Florida, Woods said. The bank announced earlier this month the hiring of Michael Cherny as head of wealth management advisors and Tom Metzger as head of private wealth managers. Citizens has opened its first private-banking office in Boston and has plans to open additional offices in 2024, including in Palm Beach, Fla., and in Mill Valley, Calif., in the spring.

Woods expects the private bank is going to generate significant returns. “We just formally launched [the private bank] in the fourth quarter of 2023, and we have over a billion dollars of deposits already,” he told me. 

During our conversation, Woods also talked about how the CFO role is changing: “The evolution of the CFO role over the past decade or more involves an intensifying expectation that the CFO is a partner to the CEO and to the business unit leaders on deriving strategy.”

You can read the complete Future of Finance interview here.

Sheryl Estrada
sheryl.estrada@fortune.com

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Leaderboard

Cosmin Pitigoi was named CFO at Flywire Corp. (Nasdaq: FLYW), effective March 4. Pitigoi previously spent 20 years in finance leadership roles at PayPal and eBay, where he was most recently SVP in PayPal finance. While at eBay, Pitigoi held leadership roles across investor relations, business unit FP&A and treasury, and began his career in operational and finance roles at E-Trade and Barclays.

Michael Niggemann is going to step in as interim CFO at Lufthansa Group, effective May 7, in addition to his existing duties as a board member for the division of Personnel, Logistics, and Non-Hub Business. Current CFO Remco Steenbergen is one of four executives stepping down as the airline is “reshaping and realigning its executive board,” as stated in the announcement. The decision comes as the airline is moving away from the COVID-19 era, according to Lufthansa.

Big deal

While employers often rely on colleges as a principal supplier of professional talent, college is not a guarantee of labor market success, according to a new report by Burning Glass Institute and the Strada Education Foundation.

Talent Disrupted: College Graduates, Underemployment, and the Way Forward finds that one of biggest risks students face is that their degree will not provide access to a college-level job. Today, only about half of bachelor’s degree graduates secure employment in a college-level job within a year of graduation, the research finds. Among the underemployed recent college graduates, the vast majority (88%), are severely “underemployed”—working in jobs that typically require only a high school education, or less, such as jobs in office support, retail sales, food service, and blue-collar roles in construction, transportation, and manufacturing.

Just 12% are moderately underemployed, for example, working in jobs that require some education or training beyond high school but less than a bachelor’s degree. The findings are based on dataset of 60 million workers in the United States, including approximately 10 million who has a terminal bachelor’s degree.

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However, participation in internships makes a difference. There is a strong correlation between internships and college-level employment after graduation, according to the report. The odds of underemployment for graduates who had at least one internship are, on average, 48.5% lower than those who had no internships. The benefits associated with completing an internship are relatively strong across degree fields.

Courtesy of The Burning Glass Institute

Going deeper

An updated report from the International Federation of Accountants (IFAC) and AICPA & CIMA finds that the largest global companies are providing more detail about their sustainability reporting, and also are obtaining a greater scope of assurance on those disclosures. The study, which is an annual benchmark now including 2022 data, also found the use of varying sustainability standards and frameworks continues to make it difficult for investors, lenders, and other stakeholders to find consistent and comparable sustainability information. 

Overheard

“If you don’t have everybody pretty much on board, you can have major countries not acting with a kind of cooperative sense; [then] they can make a real mess elsewhere.” 

—Blackstone cofounder and CEO Stephen Schwarzman spoke at length about his fears on AI during a panel at the FII Priority Miami Summit, Fortune reported. He also argued that AI could help criminals that otherwise would not have been very bright. 

This is the web version of CFO Daily, a newsletter on the trends and individuals shaping corporate finance. Sign up for free.

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Aadhar Housing Finance IPO allotment to be out on May 13. Steps to check status

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Aadhar Housing Finance IPO allotment to be out on May 13. Steps to check status

Aadhar Housing Finance IPO Allotment: The bidding for the initial public offering (IPO) of Aadhar Housing Finance has ended and the public issue received strong demand. The investors’ focus now shifts on Aadhar Housing Finance IPO allotment which is expected to be finalised on Monday.

Aadhar Housing Finance IPO opened for subscription on May 8 and closed on May 10. Aadhar Housing Finance IPO allotment date is May 13 and share listing date is May 15.

The company will finalise the basis of allotment on Monday and the investors can know if and how many shares they have been allotted.

Also Read: TBO Tek IPO allotment to be finalised on May 13. Latest GMP, steps to check status

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Investors can check Aadhar Housing Finance IPO allotment status on the BSE website as well as on the official portal of IPO registrar. Kfin Technologies is the Aadhar Housing Finance IPO registrar.

Follow the below given steps to check Aadhar Housing Finance IPO allotment status online.

Aadhar Housing Finance IPO allotment status on BSE

Step 1: Visit the BSE website on this link – https://www.bseindia.com/investors/appli_check.aspx

Step 2: Select ‘Equity’ under ‘Issue Type’

Step 3: Select ‘Aadhar Housing Finance Limited’ in the ‘Issue Name’ dropdown menu

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Step 4: Either the Application number or PAN details

Step 5: Click ‘Search’

Your Aadhar Housing Finance IPO allotment status will appear on the screen.

Also Read: Mandeep Auto Industries IPO opens next week: From price band to key dates – all you need to know

Aadhar Housing Finance IPO allotment status on Kfin Technologies

Step 1: Visit Kfin Technologies website on this link – https://kosmic.kfintech.com/ipostatus/

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Step 2: Select ‘Aadhar Housing Finance Limited’ in the Select IPO dropdown menu

Step 3: Select among the options given – Application No, Demat Account and PAN

Step 4: Enter the details as per the option selected

Step 5: Enter Captcha and click ‘Submit’

Your Aadhar Housing Finance IPO share allotment status will be displayed on the screen.

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Aadhar Housing Finance IPO GMP Today

Aadhar Housing Finance IPO shares are trading at a decent premium in the grey market. Aadhar Housing Finance IPO GMP today is 71 per share, as per market observers. This indicates that Aadhar Housing Finance shares are trading at 386 apiece in the grey market, commanding a premium of 22.54% to the issue price of 315 per share.

Aadhar Housing Finance IPO Subscription Status

Aadhar Housing Finance IPO has been subscribed 26.76 times in total as it received bids for 178.65 crore equity shares as against 6.67 crore shares on the offer, according to the NSE data.

The public issue has been subscribed 2.58 times in the retail category, 76.42 times in the Qualified Institutional Buyers (QIB) category, and 17.33 times in the Non-Institutional Investors (NII) category.

Read here: Aadhar Housing Finance IPO: Issue subscribed 25.49 times on day 3, QIB portion booked 72 times; Check GMP, other details

Aadhar Housing Finance IPO Details

The bidding for Aadhar Housing Finance IPO commenced on May 8 and ended on May 10. The IPO allotment is likely to be fixed on Monday, May 13, and the Aadhar Housing Finance shares are set to be listed on both the bourses – BSE and NSE – on May 15.

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The 3,000 crore worth Aadhar Housing Finance IPO was a combination of fresh issue of 3.17 crore equity shares aggregating to 1,000 crore and an offer for sale (OFS) component of 6.35 crore shares aggregating to 2,000 crore.

Aadhar Housing Finance IPO price band was set at 300 to 315 per share. Ahead of the IPO opening, the company had raised 897.90 crore from anchor investors on May 7.

ICICI Securities, Citigroup Global Markets India, Kotak Mahindra Capital Company, Nomura Financial Advisory And Securities (India) Pvt Ltd and SBI Capital Markets are the book running lead managers of the Aadhar Housing Finance IPO, while Kfin Technologies is the IPO registrar.

Read all IPO news here

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Published: 11 May 2024, 09:52 AM IST

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BC finance minister will retire following provincial election in fall

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British Columbia’s finance minister has announced she won’t be running again in the next provincial election after serving in the legislature for nearly two decades.

Katrine Conroy said it will be hard to leave the people she’s worked with over the years, but at 66, it’s time to step back to spend time with her family.

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Conroy has held several portfolios under the New Democrat government and said it’s too hard to settle on a “greatest accomplishment,” but she’s especially proud of her work to waive post-secondary tuition fees for former youth in care.

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She has also served as forests minister, and she thanked Premier David Eby and his predecessor, John Horgan, during the announcement on Friday, saying they “had the courage to appoint this rural woman to cabinet.”

Conroy was first elected in 2005 to represent West Kootenay-Boundary, then re-elected in 2009, 2013, 2017 and 2020.

She said one of her sons had reminded her that a Conroy had been on ballots in the region since 1986. That’s when her late husband Ed Conroy first ran as a school board trustee before he too served as an MLA between 1992 and 2001.

“That’s 38 years of our family supporting both of us in public service to our communities,” Conroy said at an announcement in Castlegar in the southern Interior, her voice faltering with emotion.

“I have been here as an elected official since (2005) and vicariously through my husband when he was an MLA for 10 years.”

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In addition to finance, Conroy currently serves as minister responsible for the Columbia Basin Trust, Columbia Power Corporation and the Columbia River Treaty.

She said her work will continue until someone is elected to replace her.

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While the NDP were in opposition before the 2017 election, Conroy was the critic for seniors and Interior economic development, among other roles.


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Negotiating Climate Finance: India’s Leadership Role in the Global South

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Negotiating Climate Finance: India’s Leadership Role in the Global South
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