Astrology—an art, science, or complete pile of baloney, depending on how you feel—is a tradition that goes back some 5,000 years. Proponents believe that the position of the planets influence conditions on earth, and that there’s a right and wrong time for nearly every human activity—including business activities. So naturally, that’s the philosophy that guides nearly all business decisions—from hiring to product launches—at the Chani app.
Chani is an astrology app and media company with just over2 million downloads and an undisclosed number of paid subscribers. Last year, Inc. estimated the company’s annual revenue to be around $14 million. Founded by longtime astrological content creator Chani Nicholas and her wife, former Morgan Stanley associate Sonya Passi, the platform provides users with birth chart analysis as well as insight on dealing with certain astrological events, such as the infamous Saturn Return and the dreaded Mercury Retrograde.
Sabra Mohamed, Chani’s director of growth and marketer extraordinaire, wasn’t much of a believer in astrology before working at the company. But when she joined in 2022, she figured, well—as a marketer, you have to be able to sell anything, right?
Now, after a few years working at Chani, Mohamed is a believer.
An Inc.com Featured Presentation
“A lot of entrepreneurs will say, ‘It’s hard work, and I was lucky, I was there at the right time,’” Mohamed says. “We’re hacking that.”
What is electional astrology?
Astrology focuses on the idea that the planets’ orbit in relation to each other can provide information about a person, place, or thing, and influence events or conditions on Earth.
Here’s one way to think of it: If you check the weather, and you see one day it’s going to be sunny, you wear sunscreen and open a lemonade stand. If the weather forecast is thunderstorms and clouds, you might not launch your lemonade stand that day.
Electional astrology, then, is sort of like meteorology. Operating with the belief that certain planetary arrangements create conditions that are favorable or unfavorable for certain activities, one can adjust the timing of those activities to the “weather.”
As Chris Brennan, a prominent astrology content creator, explains on his series The Astrology Podcast, elections began to be used, at least in Western astrology, around the Middle Ages and are almost a natural outgrowth of astrology. If you’re already looking at the planets for good or bad situations, you might also try to plan for more positive or “supportive” astrology for things you want to do. For example, as Chani the company notes on its website, this method was used to pick the founding date of the city of Bagdad. Brown University’s archeology department archive confirms this.
In Greek astrology, this process was known as Katarchic astrology, because Katarchic means “beginning,” Brennan says. That’s how elections work. You pick the date something starts and look how the planets are vibing (or not) on the celestial dance floor in that time period, and that is the chart for the particular event or happening.
And that’s what they do at Chani: “We elect everything we do at Chani— yes, every launch, update, and hire. It’s part of our special sauce,” the company wrote in a recent blog post.
Using astrology for launches
Nicholas began making content in 2010, with a weekly astrological newsletter, then a blog, which evolved into a savvy media empire with hundreds of thousands of followers and other writing projects. For a few years she was the Oprah website’s resident astrologer, as well as writing a book that came out in January 2020, and designing workshops online and in-person.
But Passi and Nicholas, who met in 2014 and have been together in life and business since, wanted more—specifically, an app (with paid subscribers).
In February 2020, they signed a contract with a developer, and the two entrepreneurs began to hunt for a date to drop Chani the app into the world.
Their original launch date was in August 2020, but in addition to being way too ambitious a deadline, an astrologer advised against it, Nicholas explains, citing a period of planetary turmoil in September 2020, which is when, incidentally, Supreme Court Justice Ruth Bader Ginsburg died.
The astrologer advised them to look at December 2020.
In that month, on the winter solstice, Jupiter and Saturn would be crossing one another, or “conjuncting” in astrological parlance, for an extremely auspicious aspect—the “Great Conjunction,” it was called. This event was going to be visible in the night sky and had been getting a raft of media coverage in the months leading up to December. Jupiter represents wealth and Saturn represents boundaries and discipline (a good vibe for a slow-and-steady, built-to-last company, they say), and the planets were going to be conjuncting at a specific point in Aquarius.
Aquarius, as an air sign, has to do with collective energy, communication, intellectual pursuits, information, and technology, Nicholas says.
So—kind of the perfect date to launch an astrology app focused on collective healing, one of Nicholas’s core brand messages.
It proved to be a good choice. They made back the money they had invested, with “just how many people signed up for that one-week free trial on the first day and then converted to paid subscribers by the end of that week,” Passi says.
They leverage this strategy when the astroweather (a term Nicholas often uses to explain astrology) is stormy, too, Mohamed explains. The Chani team might choose to launch content in the app designed for emotional support during an eclipse, which are considered negative times, astrologically speaking. She cites their “Breakthrough” manifestation course as an example. It allows users to feel like the company is speaking to them at the perfect time, she adds.
“We’re working with the planets and working with the energy that we’re all feeling,” she says.
“We’ve done that in the growth in the marketing of the business, and I’ve seen it consistently land. It’s a bit crazy,” Mohamed says. She’s now fully invested and uses the charts to plan her whole marketing strategy. She’ll have Nicholas look at the company’s astrology chart for the future and start cooking. “I’m like, ‘Chani, talk to me, [about] 2026, 2027.…’”
If you’re looking to astrology to find a good period for a launch, look not just at one particular date but at a general period, since you’ll be working before, during, and after that date. “If you pick a good day that is in the middle of a lot of chaos, you have to consider that the chaos will impact every day until you lead up to the rollout,” Nicholas advises. One sunny day amid a storm might not be helpful, in other words. “When that’s not possible, know that the complicated astrological [weather] will impact the days before and after launch,” she adds.
Hiring by the stars
As Passi explains, the date that they use for determining the astroweather for a hire is not actually when you post a job or even make the decision. It’s the day the company makes the offer to the person. So, they actually look at the astrology ahead of time, find a good date to make an offer, then work backwards on the hiring process from there, she says.
For the more technically inclined, they’ll look for a positively aspected or situated sixth house—which is the house of employees and employment. Astrology says that houses delineate sections of the sky relative to Earth and each house represents an area of life. The planets’ movement through the houses creates different astrological weather patterns.
How they use astrology to hire can also depend on the role, says Nicholas. If the company is hiring for HR, they might look for a hire date with an 11th house, which deals with groups of people and associations, with “good significations.” Positive aspects include trines and sextiles, whereas more “challenging” ones, as Nicholas calls them, can be squares or oppositions.
Is there an app for this?
Could they make an electional astrology tool in the app for other business owners someday? Short answer: yes. “We want everyone to be able to do what we’re doing,” Mohamed says.
Those who want to experiment on their own might try something low-stakes, Nicholas suggests. For example, she says, picking a good chart for a meeting might involve looking at the third house of communication or the seventh house of relationships. I’m wondering whether she elected the time for our meeting and interview, and Passi answers the question before I ask. “We didn’t elect the time for this call,” she laughs. “This was the only 30 minutes I had free today.”
So keep that grain of salt handy. Know that no date will be perfect, and don’t get too obsessed with it, Nicholas says. “You can’t sanitize your life of difficulty,” even by using astrology, she says. Sometimes you just have to stand in the rain and hawk your goods.
My background in architecture and technology, combined with scaling a company to the Inc. 500 and coaching dozens of leadership teams, has shown me that competitive advantage comes from anticipating market changes rather than reacting to them. Traditional quarterly competitive analysis tells you what already happened, while AI-enhanced intelligence reveals what’s about to happen. The teams that consistently outperform competitors have learned to use continuous market monitoring to out-replan their competition, making strategic adjustments before market shifts become obvious to everyone else.
1. Deep company research
Traditional competitor analysis documents past actions and current positioning, but AI enables deeper investigation into strategic patterns and decision-making tendencies that predict future moves. Use AI to analyze competitor histories, leadership track records, and strategic evolution patterns to anticipate their next moves rather than just cataloging what they’ve already done. A leadership team implemented this approach and discovered their main competitor consistently entered new markets 18 months after hiring specific types of executives, allowing them to predict and prepare for competitive threats in three emerging market segments before their competitor made any public announcements.
2. Real-time positioning analysis
Quarterly competitive reports miss the constant adjustments competitors make to messaging, target segments, and market responses. AI-powered monitoring tracks how competitors modify their positioning across websites, social media, advertising, and customer communications in real time. Set up AI systems to detect changes in competitor messaging, pricing strategies, and customer targeting as they happen rather than waiting for formal announcements. One team used this method to identify a competitor’s pivot toward enterprise customers by analyzing subtle changes in their website language and case study selection, enabling them to adjust their own enterprise strategy two months before the competitor officially announced their market repositioning.
3. Leadership team intelligence
Understanding competitor strategies requires insight into the people making strategic decisions, not just the companies they lead. AI can analyze executive backgrounds, career patterns, previous strategic decisions, and leadership philosophies to anticipate organizational direction and capability investments. Use AI to research competitor leadership teams and identify strategic tendencies based on their professional histories and public statements. A team discovered their competitor’s new CEO had a consistent pattern of aggressive acquisition strategies in previous roles, prompting them to prepare defensive measures and identify potential acquisition targets before bidding wars began.
An Inc.com Featured Presentation
4. Automated market monitoring
Traditional industry reports arrive weeks after significant developments, but AI monitoring captures competitor announcements, partnership changes, regulatory filings, and strategic moves as they occur. Configure AI systems to continuously scan multiple information sources and alert your team to competitive developments immediately rather than waiting for industry publications to summarize changes. This approach enabled one leadership team to identify a major competitor’s supply chain disruption through automated monitoring of regulatory filings and trade publications, allowing them to secure additional market share by accelerating their own supply chain investments before the disruption became widely known.
5. Comprehensive coverage analysis
Single-source competitive intelligence creates blind spots, but AI can synthesize analyst reports, customer feedback, social media sentiment, and third-party assessments to identify competitor vulnerabilities and market perception shifts across multiple perspectives. Use AI to aggregate and analyze diverse information sources about competitors, creating comprehensive intelligence that reveals strategic opportunities and threats traditional research misses. A team used this method to discover that while their competitor appeared strong in financial reports, customer satisfaction scores and employee sentiment were declining, indicating potential vulnerability that informed their competitive strategy and messaging approach.
Action Items
Teams that master continuous AI-powered market intelligence consistently identify strategic opportunities and threats months before competitors using traditional quarterly analysis cycles. The competitive advantage comes from speed of adaptation, not depth of analysis—teams that can out-replan their competition ultimately win.
Which market changes could your team anticipate with continuous monitoring rather than quarterly reports?
How could real-time competitor intelligence improve your strategic decision-making speed?
What competitive blind spots might AI-powered market analysis reveal in your industry?
The opinions expressed here by Inc.com columnists are their own, not those of Inc.com.
My architecture training taught me that the best technology amplifies existing systems rather than replacing them. And as a former tech founder who scaled to the Inc. 500, I learned firsthand how systematic integration beats random tool adoption.
Now, coaching dozens of leadership teams on strategy, I consistently see high-performing teams use AI to systematize the most critical and complicated parts of strategic planning and implementation. These teams don’t just use AI as assistants—they embed it into their strategic thinking and replanning processes to accelerate decision-making cycles and improve execution quality in ways their competitors can’t match.
1. Competitive intelligence acceleration
Traditional market research happens quarterly and delivers insights too late for strategic advantage. AI integration transforms this into continuous competitive awareness by automating data collection and pattern recognition across multiple sources.
Set up AI systems to monitor competitor announcements, industry trends, and customer sentiment shifts, then feed this information directly into weekly strategic planning sessions. A leadership team implemented this approach and discovered a competitor’s pivot strategy three months before it became public knowledge, allowing them to adjust their product roadmap and capture market share the competitor had targeted.
An Inc.com Featured Presentation
2. Decision-making bias correction
Leadership teams consistently fall victim to confirmation bias and groupthink during strategic planning. AI integration addresses this by generating alternative perspectives and challenging assumptions through structured questioning. Configure AI to review strategic proposals and generate counterarguments, alternative scenarios, and questions the team hasn’t considered. During planning sessions, use AI-generated prompts to force examination of blind spots and unstated assumptions.
One team I worked with used this approach when evaluating a major market expansion and discovered they had overlooked regulatory risks that would have cost millions, ultimately choosing a different expansion strategy that delivered better results.
3. Strategy translation clarity
High-level strategic vision often fails because teams struggle to translate broad concepts into specific, measurable objectives. AI integration solves this by systematically breaking down strategic initiatives into concrete action items and success metrics. Input your strategic objectives into AI systems and generate detailed implementation plans, potential obstacles, and measurement frameworks. Use AI to identify gaps between vision and execution before they become problems.
A leadership team used this method to transform their “digital transformation” goal into 47 specific actions with clear owners and deadlines, achieving their transformation objectives six months ahead of schedule.
4. Risk assessment automation
Most teams identify risks reactively after problems emerge rather than proactively during planning phases. AI integration enables continuous risk monitoring and mitigation strategy development before threats materialize. Build AI systems that scan internal operations, market conditions, and external factors for emerging risks, then automatically generate mitigation options for leadership review. Configure alerts for risk threshold breaches and predetermined response protocols.
A team implemented this approach and identified supply chain vulnerabilities eight weeks before disruptions occurred, allowing them to secure alternative suppliers while competitors faced shortages.
5. Execution monitoring systems
Strategic plans fail because teams lack real-time visibility into implementation progress and course correction capabilities. AI integration provides continuous performance monitoring and automated insights into execution effectiveness. Connect AI systems to operational metrics, customer feedback, and team performance indicators to identify execution gaps immediately rather than waiting for quarterly reviews. Generate weekly execution reports highlighting progress against strategic objectives and recommended adjustments.
One leadership team used this system to identify that their customer acquisition strategy was working but their retention efforts were failing, allowing them to reallocate resources and recover their annual targets.
Action Items
Teams that systematically integrate AI into strategic planning consistently outperform competitors who treat AI as separate tools rather than strategic amplifiers. The competitive advantage comes from enhanced decision speed and quality, not from having better technology.
Which of your current strategic planning processes would benefit most from continuous AI-powered insights?
How could AI-generated alternative perspectives improve your team’s decision-making quality?
What strategic blind spots might AI help your leadership team identify before they become problems?
The opinions expressed here by Inc.com columnists are their own, not those of Inc.com.
Scotland-based accountancy firm Wbg has launched a new service offering part-time chief financial officer (CFO) expertise to support the financial management needs of small and medium-sized businesses (SMEs).
The move is tailored to companies that do not require a full-time CFO but still need professional guidance in their financial operations and strategic planning, the company said.
The fractional CFO service will complement Wbg’s existing portfolio of financial services, which already includes areas such as compliance, VAT, bookkeeping, management accounting, and cashflow management.
The new offering is designed to provide SMEs with the necessary financial oversight and advice to facilitate their growth and development.
Experienced CFOs from various sectors will be available to assist businesses in setting and pursuing strategic goals, formulating and executing financial strategies, and ensuring financial reporting and budgeting.
The service is particularly geared towards businesses that are in the process of expanding or planning their exit, the company noted.
Catherine Livingstone, a partner in Wbg’s Accounts & Business Advisory Service, said: “With our new fractional CFO service, we aim to deliver objective, unbiased guidance that’s both flexible and responsive to the unique requirements of each business.
“No two businesses are the same – each faces distinct challenges – and our service is designed to offer personalised solutions that address those specific needs.”
Livingstone added: “This service allows us to give our SME clients access to tailored financial guidance and strategic support. The fractional CFO service means a business can have an in-house advisor on a flexible schedule, providing expert input precisely when it’s needed.
Clarke, who brings experience from his previous roles including finance director and COO at Localist, will be responsible for driving Wbg’s growth plans.
He succeeds Yvonne Kemp, who transitions to support investment initiatives with Wbg shareholders N4 Partners.
“Wbg introduces CFO service for SMEs seeking financial leadership ” was originally created and published by International Accounting Bulletin, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Joseph Otting, New York Community Bancorp’s recently installed CEO, described a March 6 capital raise of $1.05 billion as the best decision for investors. “If the capital raise was not ready to go specifically that afternoon, the chances of the company surviving would have been at a peril,” he told shareholders.
Bloomberg
New York Community Bancorp’s new executive management team had to answer this week to shareholders whose investments in the beleaguered company have lost substantial value.
But questions from shareholders, none of whom were identified during the meeting, suggested at least some discontent in the wake of the capital influx, which significantly diluted their existing position in the Long Island-based company.
One shareholder wanted to know why investors should sign off on the additional capital, which came from an investment group led by former Trump administration Treasury Secretary Steven Mnuchin. Although the capital infusion was announced March 6 and closed six days later, New York Community was required to obtain shareholder approval to finalize the deal because of the amount of stock it plans to issue.
“If the capital raise was not ready to go specifically that afternoon, the chances of the company surviving would have been at a peril,” CEO Joseph Otting told shareholders during the meeting. “As we look back today, it was the right decision for the company, it was the right decision for the investors, and collectively we will work very hard to reestablish the value of this company going forward.”
New York Community’s annual meeting, which took place virtually, was open only to shareholders, though a recording was later made public. It was the firm’s first annual meeting with its new management team.
The new corporate leaders include Otting, who served alongside Mnuchin in the Trump administration and took over as the company’s president and CEO on April 1. Earlier this week, Otting succeeded Sandro DiNello as chairman of the board.
New York Community is the parent company of Flagstar Bank. It acquired Troy, Michigan-based Flagstar Bancorp in late 2022 as part of a strategy to diversify its loan portfolio.
Wednesday’s meeting offered a chance for investors to hear more about how executives are trying to move the $112.9 billion-asset company forward after severe challenges this year, which have been driven primarily by bad loans in its commercial real estate portfolio. So far this year, the company’s stock price has plummeted by 70%, its leadership team has been almost entirely overhauled and it has warned of ongoing pain as it roots out troubled multifamily and office loans.
Shareholders approved the proposal related to the capital infusion, as well as seven other company proposals included in its latest proxy statement. They rejected one company proposal and one shareholder proposal, both of which aimed to eliminate supermajority voting requirements.
The vote counts have not yet been released.
A proposal that would allow the bank’s board to enact a reverse stock split of issued and outstanding common stock by a ratio of 1-for-3 was among those that received majority shareholder support. A reverse stock split is a strategy that banks can put in play when their shares are trading at low figures, and they want the prices to look higher.
According to New York Community’s proxy statement, the company expects its tangible book value per share this year to be $6.05 to $6.10, reflecting shareholder dilution of nearly 40%. The company has said that tangible book value per share could rise to somewhere between $7 and $7.25 by 2026.
He also noted that the company’s shares are trading at about half of their book value, an indication that investors are skeptical that $1.05 billion will be enough to cover potential loan losses or New York Community’s weaker earnings going forward.
On Wednesday, one New York Community shareholder wanted to know if the bank could enact a policy that would protect existing shareholders’ investments in the event of a reverse stock split. In the company’s proxy statement, the board said that doing so “should increase the per share price of the common stock and make the bid price of the common stock more attractive to a broader group of institutional and retail investors.”
Otting did not commit to any such policy Wednesday, but he did say that it was “unfortunate, the situation that we found the company in when we arrived” and that the management team “appreciates the impact” that the company’s challenges have had on longtime shareholders.
“Myself and the new executive management team and the board really are here to enhance the value to all shareholders, and that is our mission ahead,” Otting said. “We really want to build a strong regional bank that serves the needs of commercial real estate customers, commercial and corporate banking customers, specialized industries and consumers.”
Another shareholder wanted to know more about the steps New York Community is taking to make sure it has adequate reserves to handle future loan losses. About 45% of the firm’s loan portfolio is made up of multifamily loans, which are under pressure due to a combination of higher interest rates and a 2019 law in New York that’s hampered landlords’ ability to raise rents.
About 4% of the book is made up of office loans, which are also facing challenges as companies reduce their office spaces in the post-pandemic shift to hybrid- and remote-work environments.
Craig Gifford, who took over as chief financial officer in mid-April, said the company continues to comb through both of those loan categories, moving from the largest loans to smaller ones. Preliminary results from those reviews are in line with the loan-loss reserves reported in the first quarter, as well as the potential for incremental reserves throughout the year, Gifford said.
Meanwhile, the company is planning to add more new faces to its executive ranks. It is hiring a new chief credit officer and someone to run its commercial and private banking unit, Otting said.
New York Community does not plan to hire a new chief operating officer, following the departure of Julie Signorille-Browne last month. Otting said Signorille-Browne’s duties have been divided up among other executives.
The company’s head of human resources and its head of technology will now report to Otting, while Gifford will oversee operations and facilities as well as procurement duties, Otting said.
Polo Rocha and Catherine Leffert contributed to this story.
New York Community Bancorp’s new management team has plotted out a path to improved profitability, but they say 2024 will be a “transition year.” It remains to be seen just how rocky the next eight months will be.
The Long Island-based company, whose apartment-heavy commercial lending portfolio landed it in hot water earlier this year, warned investors Wednesday there will be more pain in coming quarters as it continues to root out troubled loans. Charge-offs and loan-loss provisions will be elevated this year before returning to more normal levels in 2025 and 2026, executives said.
Borrowers have so far shown “amazing resiliency,” new CEO Joseph Otting, the former top bank regulator, told analysts during the company’s first-quarter earnings call. Still, net charge-offs were $81 million during the quarter, while the provision for loan losses totaled $315 million — far above where both metrics were a year earlier. Nonperforming loans also skyrocketed year over year, totaling $798 million as of March 31.
The company said it is guiding for $750 million-$800 million in provisions for all of this year. It then expects that figure to drop to $150 million-$200 million next year and in 2026.
Analysts say there are still a lot of unknowns. One big question: How will New York Community, which has gone through significant turmoil since late January, ultimately close the gap between its current performance metrics and what the management team is aiming to achieve by 2026?
“I think it’s clearly still in the early stages” of a turnaround, said David Smith, an analyst at Autonomous Research who covers the bank. “They put out a more robust and detailed set of expectations than most investors expected, but it’s still a ‘Prove it’ story.”
Otting, who has been CEO for about eight weeks, expressed confidence that the new management team and restructured board of directors can get the $112.9 billion-asset company back to profitability. The company reported a $327 million net loss in the first quarter.
Otting, along with former Treasury Secretary Steven Mnuchin, turned around the failed IndyMac Bank and eventually sold it for a large profit. The two teamed up again in the New York Community rescue, which required a $1 billion capital infusion.
“We’ve done this before,” Otting said on the call. “And we feel we can do it again.”
Investors seemed to agree, at least a little, driving up the stock price by 30% Wednesday to $3.44 per share.
New York Community’s troubles began on Jan. 31 when the company reported a sizable fourth-quarter loss, signaled trouble in its commercial real estate loan portfolio and slashed its dividend, sparking a 37% decline in its share price. The sell-off continued in February, in part because of ongoing uncertainty about the company’s loan books. The surprise $1 billion investment, led by Mnuchin, was intended to ease the turmoil and bolster the company’s capital levels.
The plan laid out Wednesday includes both short-term and medium-term goals.
In the near term, New York Community, which is the parent company of Flagstar Bank, plans to sell or run off noncore assets, work out problem loans and reduce its operating expenses. Medium-term targets include diversifying the loan portfolio, which is currently dominated by multifamily loans; growing core deposits as a way to improve the company’s funding base; and increasing fee income.
A deal to sell noncore assets worth about $5 billion may be in the works, management said Wednesday, though they did not provide additional details about the asset class.
By the fourth quarter of 2026, New York Community aims to achieve a return on average assets of 1% and a return on average tangible common equity of 11%-12%. It is also targeting a common equity Tier 1 capital ratio of 11%-12%. That ratio was 9.45% in the first quarter.
Return on average assets was negative 1.13% in the first quarter, while return on average tangible common equity was negative 10.02%.
“We’ve done this before,” New York Community Bancorp CEO Joseph Otting said Wednesday, in reference to the earlier turnaround of a failed bank that he and former Treasury Secretary Steven Mnuchin engineered. “And we feel we can do it again.”
Patrick T. Fallon/Bloomberg
In recent weeks, the new management team has taken a “deep dive” into the health of the bank’s commercial real estate portfolio, said Craig Gifford, New York Community’s chief financial officer. The review covered both the bank’s $36.9 billion multifamily book and its $3.1 billion office loan portfolio.
The office portfolio makes up just 4% of the bank’s loans, but it’s part of a sector that’s been suffering a “high degree of stress,” Gifford said. The review of office loans, conducted with the help of an independent party, has thus far covered 75% of that portfolio.
Executives have set aside a sizeable chunk of reserves to cover potential stress in their office loans. The bank said that its ratio of reserves to total office loans was about 10%, significantly above most of its peer banks.
The comparable figure is significantly smaller for New York Community’s much-larger multifamily loan book, where the allowance for loan losses was 1.3% of the portfolio. The bank has examined its top 250 multifamily loans, but it has yet to take an in-depth look at 64% of the portfolio.
Given how much of the multifamily loan book still needs to be reviewed, “I think there’s uncertainty there,” Peter Winter, an analyst at D.A. Davidson, said Wednesday.
The multifamily sector has been hit hard, particularly rent-stabilized buildings in New York City, where landlords’ ability to raise rents has been drastically hampered by a 2019 state law. The new rent restrictions come on top of far stronger eviction protections for nonpaying tenants, along with ballooning maintenance and insurance costs, said Seth Glasser, a New York City multifamily broker at the firm Marcus & Millichap.
The value of rent-regulated buildings in New York has been “annihilated,” Glasser said, with potential sale prices falling by 50% or more. Few potential buyers want the buildings since they have “no business model,” and few lenders would finance any deal, he added.
“There’s some really significant distress that continues to emerge,” Glasser said. “It feels like it’s getting worse every month.”
Otting noted that the buildings’ expenses have risen sharply, but he also said that the limited number of vacant apartments means the buildings have a “pretty solid” revenue stream.
New York Community believes the probability of defaults is rising, Otting said, but the multifamily portfolio so far “has held up very well” as borrowers keep making their payments.
Otting also expressed optimism that multifamily borrowers will remain relatively healthy even as their currently low interest rates reprice upward. So far, borrowers have been able to adjust to higher payments with “almost no delinquencies,” said Gifford, the bank’s CFO.
New York Community has brought on an experienced hand at managing loans that may fall into trouble. James Simons, who formerly ran loan workouts at U.S. Bank in Minneapolis, joined New York Community as a “special advisor to the CEO” to evaluate the health of its borrowers and whether it needs to set aside more reserves to cover potentially troubled loans, Otting said.
“The information is available to us,” he said. “We just need to formulate that information in the right way.”
The medium-term plan is to lower New York Community’s long-standing concentration in commercial real estate. The bank’s former chief executive, Thomas Cangemi, kick-started that journey with the 2022 acquisition of the consumer mortgage heavyweight Flagstar Bancorp in Troy, Michigan.
Just a few months after it completed the deal for Flagstar, New York Community acquired large portions of the failed Signature Bank. The acquisitions vaulted New York Community over $100 billion of assets, putting it into a category that prompts additional scrutiny from bank regulators.
During the lengthy process to acquire Flagstar, the company switched its primary federal regulator from the Federal Deposit Insurance Corp. to the Office of the Comptroller of the Currency. On Wednesday, Otting, who formerly led the OCC, said the company was “not ready to be regulated” by that agency.
“So we have a lot of catching up to do to get our standards up,” Otting said. “But we’re committed to doing that, and we’ve hired the people who understand what that looks like.”
The company’s diversification plan also covers its deposits. Otting said the bank is focusing on continuing to grow core deposits — part of its ongoing shift away from New York Community’s legacy model of funding multifamily loans with higher-cost certificates of deposit, which has included bringing in new depositors from Flagstar and Signature.
New York Community has recently lost some bankers to smaller rivals, including Peapack-Gladstone Financial and Dime Community Bancshares, raising the risk that departing bankers will bring customers’ deposits with them.
But the company’s deposits have stayed resilient after initial outflows in February, when its sharp stock decline prompted some depositors to leave. The bank started 2024 with $81.5 billion of deposits, a figure that dropped to $76.1 billion on March 7, when Mnuchin’s investment group announced plans to pump in new capital.
Deposits then fell slightly to $74.9 billion at the end of the first quarter, but they ticked up by $300 million as of April 29, according to company executives.
The US Military is structured into several branches, including the Army, Navy, Marine Corps, Air Force, and Space Force. Each branch has a specific hierarchy of officer ranks, and at the top of this structure are the general officers.
US Army generals is 231
US Navy generals is 162
US Air Force generals is 198
US Marine Corps generals is 62
Totaling of 653
General officers hold ranks from one-star brigadier generals to four-star generals in the Army, Air Force, and Marine Corps, while the Navy equivalents are rear admirals lower half to full admirals.
These officers possess substantial responsibilities which include leading large units, making strategic decisions, and overseeing military operations. They also represent the military’s highest level of command and have considerable influence over military policy and national defense.
Key Takeaways
The U.S. military, comprising five branches, is led by 653 general officers.
Generals are pivotal in leadership, strategic decision-making, and overseeing operations.
Becoming a general involves paths like the USMA, ROTC, OCS, and direct commission.
The highest military rank, four-star general, is for those in key positions, selected through a rigorous process involving the President and Department of Defense.
Civilian oversight of the military is maintained through legislative actions.
Generals have historically and currently played crucial roles in military strategy.
US Military Structure
The United States military is a complex organization structured to provide national defense across various domains—land, sea, air, and space. It consists of five main service branches:
Army
Navy
Air Force
Marine Corps
and the recently established Space Force.
Each branch serves a specific operational role but works in conjunction under the coordinated oversight of the Department of Defense (DoD).
The Army is the oldest and largest branch, responsible for ground-based military operations.
It is complemented by the Navy, which handles warfare at sea and has the unique ability to project power across the oceans.
Marine Corps, often working closely with the Navy, specializes in amphibious operations and rapid response.
Air Force focuses on air superiority, space operations, and strategic deterrence, while the Space Force, as the newest branch, is tasked with organizing, training, and equipping space forces.
Organizationally, these branches fall under the jurisdiction of the Department of Defense, headed by the Secretary of Defense and further subdivided into various departments and commands.
Strategic direction is provided by the Joint Chiefs of Staff, a body of senior military leaders advising the President and the Secretary of Defense according to this Gov source.
Each service branch also maintains its own civilian-led executive department, ensuring civilian control over military operations as highlighted by JSTOR. Together, they form an integrated and adaptive military structure capable of responding to a spectrum of global challenges.
Rankings of General Officers
1. Brigadier General
Serving as the second-in-command to the Commanding General of a division, the Brigadier General assists in overseeing the planning and execution of all missions as noted by Military Rankings. In the context of an infantry brigade, this role is filled by the Brigadier General as the unit commander, with a Colonel serving as the deputy commander. In the Navy, they are known as rear admirals, lower half.
The role of Lieutenant General encompasses commanding corps-sized units, which include 20,000 to 45,000 soldiers. Additionally, a Lieutenant General might hold a senior staff officer position within major command headquarters or operate as a department head at the Pentagon. The Navy equivalent of this rank is vice admiral.
Interesting Fact: Superintendents of US service academies hold the rank of lieutenant general.
4. General
A General oversees all military operations within a designated geographical area and occupies the most senior position within the Department of Defense (DoD). Key positions for Generals include Chief of Staff and the Chairman and Vice-Chairman of the Joint Chiefs of Staff.
Throughout the history of the US Army, there have been 248 individuals who have reached the rank of 4-star general as noted by CFR. Of these, 234 were promoted during their active duty in the branch, 8 received their rank upon retirement, 5 were posthumously promoted, and 1 served in the Continental Army, the predecessor of the US Army.
Interesting Fact: George Washington holds the distinction of being the sole General appointed in the Continental Army.
The 248 4-star generals also joined the Army from different routes.
157 were commissioned through the USMA (US Military Academy)
50 through the ROTC (Reserve Officer Training Corps) at a civilian institution
16 through direct commission, 13 through OCS (Officer Candidate School)
8 through ROTC at a senior military institution
1 through ROTC at a junior military institution
1 through direct commission in the ARNG (Army National Guard)
1 through the aviation cadet initiative, and
1 through battlefield commission
5. Four-Star Generals
Four-star generals hold the highest rank typically attainable in the U.S. military. This rank is reserved for officers holding positions of significant responsibility, and there are only a select number of these positions available, making this rank quite exclusive. In the Navy, officers of this rank are known as admirals.
General officers are the pinnacle of military leadership and command. They are responsible for large units and have a broad scope of influence over their service’s operations. These highly ranked officers lead from the front, setting standards for discipline, training, and combat readiness.
Brigadier Generals, Major Generals, Lieutenant Generals, and full Generals typically oversee thousands of personnel and large military installations or divisions, each progressively responsible for larger and more complex formations.
Joint Positions and Combatant Commands
At the joint level, General officers may serve as Combatant Commanders or in senior positions within the Joint Chiefs of Staff. They manage joint military efforts across different branches, ensuring interoperable and coordinated actions in various operational theaters.
The U.S. military’s unified combatant commands, such as U.S. Space Command, Africa Command, Central Command, Cyber Command, Pacific Command, European Command, Northern Command, and Special Operations Command, are each led by a four-star General or Admiral who reports directly to the President and Secretary of Defense according to DOD.
Strategic Planning and Advice
General officers are instrumental in strategic planning and providing military advice to national leaders. They analyze potential threats, create military strategies to deter or contain conflicts, and ensure the U.S. military remains a dominant force globally. Generals engage in complex evaluations of geopolitical situations and defense resources, offering expert advice to the President, Secretary of Defense, and National Security Council to shape the nation’s military and security policies.
How To Become A General?
Individuals may obtain a commission in the United States Army, Air Force, and other branches through several avenues. The United States Military Academy (USMA) at West Point and the Air Force Academy offer rigorous four-year programs culminating in a Bachelor of Science degree and a commission as a second lieutenant.
Alternatively, students may enroll in the Reserve Officers’ Training Corps (ROTC) at civilian colleges, leading to a commission upon graduation. There’s also the Officer Candidate School (OCS) that serves college graduates who did not participate in ROTC or attend a military academy.
Promotion and Advancement
The trajectory from officer to general is marked by successive promotions, typically beginning as a second lieutenant. Officers are evaluated on their leadership abilities, job performance, and potential to handle greater responsibilities.
Promotion to general officer ranks— brigadier general, major general, lieutenant general, and general—requires a demonstrated record of exceptional service, leadership, and the endorsement of senior military leadership.
Each promotion brings increased responsibility and typically involves a selection board process.
Senior Leadership Selection
To reach the general officer ranks in the United States military, officers must distinguish themselves markedly from their peers.
The selection for one-star general and above is a highly competitive process, influenced by an officer’s service record, leadership performance, education, and professional military education.
These selections are often approved at the highest levels, including the Department of Defense and the President of the United States. Advancement to four-star general requires nomination by the President and confirmation by the Senate.
The roles and responsibilities of general officers vary significantly across different services and commands within the Army and the Air Force.
The United States Army has had many generals who played pivotal roles in shaping world history through their military leadership and strategic acumen. During World War II, General Dwight D. Eisenhower served as Supreme Commander of the Allied Expeditionary Force in Western Europe, orchestrating the successful D-Day invasion and subsequently the defeat of Nazi Germany as per National Archives.
Another significant figure was General George C. Marshall, who, as Army Chief of Staff during World War II, oversaw the U.S. Army’s expansion from a modest force to one of the most powerful in history. He later served as Secretary of State, crafting the Marshall Plan which helped to rebuild Europe after the war.
Moving towards a more contemporary context, General Lloyd J. Austin’s pioneering leadership merits mention.
First African American combat brigade commander in Iraq, opposed Islamic State
General Vincent K. Brooks, as the Commander of the U.S. Army Pacific, had a significant role in managing military relations with China, ensuring regional security through diplomatic and military channels.
Generals of the United States Army have been essential in executing wartime strategies and maintaining global peace and security. Their roles often transcended beyond mere combat, impacting diplomatic and geopolitical landscapes worldwide.
Retirement and Post-Military Careers
Upon retiring from the military, many generals transition to new career paths, leveraging their leadership experience and extensive networks. Retirement from military service often comes with a transition period where these leaders must navigate their entry into civilian roles.
Career Paths
A significant number find opportunities within the defense industry. Many retired four-star officers take on roles as board members or advisers to various defense contractors.
Some generals pursue federal civil service positions, which allow them to continue contributing to government operations outside of uniformed service.
Statistics
While definitive numbers vary, reports indicate a pattern of military leaders joining the defense industry. For example, a Government Accountability Office report noted that over 1,700 military and government officials transitioned to the defense sector over five years according to Responsible Statecraft.
Challenges and Considerations:
The transition from military to civilian roles, especially in the defense industry, is often scrutinized to ensure ethical compliance and the avoidance of conflicts of interest.
Adapting to the civilian sector can be challenging, requiring generals to acclimate to different organizational cultures and operational tempos.
Military and Defense Budget
The pay grade of military personnel, including generals, is an integral part of the defense budget. Generals are at the top of the military pay scale, receiving salaries under their rank and years of service. In addition to the base pay, they are eligible for various allowances and benefits, which can include housing, healthcare, and retirement plans.
These compensations are part of the overall budget managed by the Department of Defense and are factored into the annual financial planning for the military.
Funding for these expenses comes from the overall defense budget, which includes both the base defense budget and supplemental war funding.
The Defense Health Agency, for instance, is responsible for the administration of healthcare benefits to service members, which is a significant line item in the overall budget. Pay grades and associated allowances are categorized and standardized across the military branches to ensure uniformity and equity in compensation.
Legislative and Civilian Oversight
The Senate Armed Services Committee plays a critical role in overseeing the U.S. military, including its general officers.
This committee is responsible for holding hearings that review and evaluate military activities and policy, and it also considers nominations of the President for positions such as Secretary of Defense and the Joint Chiefs of Staff as reflected in this source.
Detailed discussions and testimonies can focus on the appropriateness of the number of generals based on current defense strategies and global commitments.
National Defense Authorization Act
The National Defense Authorization Act (NDAA) is a key piece of legislation that specifies the budget and expenditures of the Department of Defense. One of its purposes is to regulate the size and structure of the military, which may include a stipulation on the number of generals.
For example, the 2017 NDAA included a provision to reduce the number of generals, aiming to streamline military efficiency and adapt to modern needs.
Role of the President
The President of the United States, as Commander-in-Chief, wields direct authority over the military but works within the constraints of policies and laws enacted by Congress. The President’s influence extends to appointing the most senior military leaders, upon the advice and consent of the Senate, thereby influencing military practices and the culture of leadership. Civilian control is further maintained by the President’s ability to set broader defense-related policies that shape military operations and strategy.
Frequently Asked Questions
What are the different ranks of generals in the U.S. Military?
In the U.S. Military, the general officer ranks are categorized loosely from one-star to four-star: Brigadier General (one-star), Major General (two-star), Lieutenant General (three-star), and General (four-star). The U.S. Army, Air Force, and Marine Corps use this ranking structure, whereas the Navy equivalent would be Rear Admiral lower half to Admiral.
How many officers attain the rank of 5-star general?
The five-star rank, formally known as General of the Army or Fleet Admiral, is a special wartime designation with only nine individuals ever promoted to this level in U.S. history. No officers currently hold this rank as it was last awarded in the mid-20th century, following World War II.
What is the total number of active 4-star generals currently serving?
The exact number of active four-star generals fluctuates based on retirements and new appointments. As of the last publicly available information, there are generally around 40 to 44 active four-star officers across all military branches.
Who holds the highest command position in the U.S. Military?
The highest military command position in the U.S. Military is the Chairman of the Joint Chiefs of Staff. This position is held by a four-star general or admiral who serves as the principal military advisor to the President, the Secretary of Defense, and the National Security Council.
How does the number of 1-star and 2-star generals compare in the U.S. Army?
In the U.S. Army, there tends to be a larger number of one-star and two-star generals compared to their three-star and four-star counterparts. For instance, there are over a hundred in each rank of one-star and two-star generals, with precise numbers varying due to changes in military structure and retirements.
Has there ever been a 6-star general, and if so, who was it?
The rank of a six-star general has never been authorized or used in the U.S. Military. However, it’s worth noting that General George Washington was posthumously awarded the title of General of the Armies of the United States, which is often informally mentioned as equivalent to a six-star rank to honor his leadership during the Revolutionary War.
Final Words
General officers in the U.S. Military are pivotal to national defense and global security. Their strategic leadership, extensive responsibilities, and commitment to service underpin the effectiveness and readiness of the armed forces.
As defense challenges evolve, so will the roles of these high-ranking officers, ensuring the U.S. Military remains adaptable and capable of addressing future threats.
Truist, Citizens Financial and Capital One said Friday that they expect their stress capital buffers, which are a component of their total capital requirements, to increase later this year.
Bloomberg
Three regional banks reported Friday that the amount of incremental capital they’re required to hold will increase following recent regulatory stress tests, while four larger banks said they’ll be allowed to hold smaller buffers.
On Friday, Capital One Financial, Citizens Financial Group and Truist Financial all said that they expect their so-called stress capital buffers, which are set by their regulators, to increase this fall. None of the three announced changes to their plans for shareholder dividends and buybacks.
The stress capital buffer, which is at least 2.5% of abank’s risk-weighted assets, gets added to a 4.5% capital requirement in order to calculate a bank’s total common equity tier 1 capital requirement. The largest, systemically important global banks also get assessed a capital surcharge of at least 1%.
John Woods, the chief financial officer at Citizens, said in a statement that the firm’s company-run stress tests imply a significantly smaller capital drawdown than the Fed’s models. The Fed has told Citizens that its preliminary stress capital buffer is 4.0%, up from 3.4% last year.
Providence, Rhode Island-based Citizens did not comment on its plans with respect to issuing dividends. It said that as of June 30, it had $1.344 billion of remaining capacity under a previously authorized share repurchase program.
Truist CEO William Rogers said in a statement that the bank got a roughly 30-basis point boost to its common equity tier 1 capital ratio from the sale of a minority stake in an insurance unit, which was completed after the start of this year’s stress tests.
Truist did not comment on any share buyback plans, but said that it plans to maintain its 52-cent per share dividend. The Charlotte, North Carolina-based company expects its stress capital buffer to rise from 2.5% to 2.9% this fall.
Capital One anticipates a larger increase in its stress capital buffer, from 3.1% to 4.8%. The McLean, Virginia-based bank, which made no additional comment, specializes in the credit card business, which would accumulate substantial losses in the Fed’s severely adverse scenario.
In that scenario, the central bank projected that the industry as a whole would lose $120 billion on credit card loans, or 22% of total projected losses.
Meanwhile on Friday, some of the nation’s biggest banks made rosier announcements about their own capital requirements. JPMorgan Chase, Goldman Sachs, Morgan Stanley and Wells Fargo all said that they expect their stress capital buffers to decline, and they all announced plans to increase their quarterly dividends.
The largest decreases were announced by JPMorgan, which said that it expects its stress capital buffer to fall from 4.0% to 2.9%, and Goldman, which anticipates a decline from 6.3% to 5.5%.
“We continue to maintain a fortress balance sheet with strong capital levels and robust liquidity, and we remain prepared for a broad range of potential outcomes, including potentially higher future capital requirements from the finalization of the Basel III capital rules,” JPMorgan CEO Jamie Dimon said in a press release.
The nation’s largest bank by asset plans to continue its current share buyback program. JPMorgan and several other large banks resumed buybacks in the first quarter after putting them on pause in 2022. JPMorgan also said it would increase its quarterly dividend from $1 per share to $1.05 per share.
“The [JPMorgan] Board’s intended dividend increase represents a sustainable and modestly higher level of capital distribution to our shareholders, which is supported by the combination of our strong financial performance and continuous investment in our businesses,” Dimon said.
The one big bank that announced a larger stress capital buffer on Friday was Citigroup. It expects its buffer to be 4.3%, up from 4.0%. CEO Jane Fraser said in a statement that Citi would have preferred not to see an increase, but added that the results demonstrate the bank’s “financial resilience through all economic environments.”
Notwithstanding the larger stress capital buffer, Citi said that it plans to increase its dividend from $0.51 per share to $0.53 per share in the third quarter.
Some of the banks that learned their stress-test results this week are set to start revealing their latest capital return plans on Friday afternoon.
That group includes regional banks, which generally recorded lower capital levels under the Federal Reserve’s severely stressed scenario than their big-bank counterparts.
While the stress test results provided insight into regulators’ view on bank resilience, the capital return plans will offer a look at how banks, after receiving input from their regulators, see their own capital levels. Many regional banks stopped or curtailed their planned capital returns, including share buybacks, in recent years and have yet to fully resume them.
“Banks are likely going to be told to keep the same cadence — no faster and no stronger,” said Chris Marinac, director of research at Janney Montgomery Scott, a financial services investment firm.
Regional banks had some of the lowest minimum capital levels this year under the Fed’s severely adverse scenario, which called for an unemployment rate of 10% and a sharp decline in the value of assets, especially those related to real estate. Regulators and investors have been paying particular attention to regional banks since the spring collapse of three major regionals.
Several regional banks saw notable declines in their capital levels under the severely adverse scenario.
Citizens Financial Group in Providence, Rhode Island, showed a post-stress common equity tier 1 capital ratio of 6.4%, down from 6.9% in last year’s stress tests but still above the regulatory minimum of 4.5%.
U.S. Bancorp in Minneapolis posted a capital ratio of 6.6%, down from 9.3% last year. Truist Financial’s post-stress common equity tier 1 ratio was 6.7%, compared with 7.8% a year ago.
“On their own, the results are relieving,” analysts from Jefferies Group said in a note. But they added that the Fed’s ongoing review of bank capital requirements, along with the implementation of the Basel III capital framework, make it hard to draw conclusions about capital return activity.
The biggest U.S. banks typically have higher capital ratios than regional banks — in part because their classification as globally systemically important banks requires them to carry additional capital, Marinac said. Capital ratios at regional banks remain above the minimum requirements, even though those banks have felt a more acute impact from unrealized security losses than larger banks have.
Still, capital levels at regional banks are “just not as high as investors want them to be,” Marinac said.
Nonetheless, the overall performance of banks in this year’s stress tests was strong, the central bank said. The aggregate maximum decline in the common equity tier 1 ratio was 2.3 percentage points in the severely stressed scenario — smaller than the 2022 maximum decline of 2.7 percentage points. That decrease is likely to result in slightly lower capital requirements for tested banks, said Francisco Covas, head of research for the Bank Policy Institute, said in a statement.
“Recognizing this year’s scenario was the most difficult on record, these outcomes are the best antidote to any lingering anxiety surrounding recent bank failures,” Covas said.
The Federal Reserve conducts annual stress tests to determine how well banks would cope with negative changes in the economic environment while continuing to lend.
Michael Barr, the Fed’s vice chairman for supervision, is working to overhaul bank supervision, including potential changes to stress testing. One change that is being explored is the incorporation of reverse stress testing, in which supervisors would try to determine what conditions would push a bank over the brink to failure.
A little over a year ago, when Citigroup laid out a multiyear plan to boost shareholder returns, a big part of the strategy involved generating more income from its global wealth management unit.
Four quarters later, however, revenue growth in that segment remains challenged by fee headwinds and higher interest rates paid on deposits, particularly within Citi’s private bank, executives told analysts Friday during the megabank’s first-quarter earnings call.
For the quarter, global wealth management revenues dropped 9% year over year. In fact, over the past year, quarterly wealth revenues have been down or flat compared with each previous-year period.
Still, the $2.5 trillion-asset company is sticking to its global wealth blueprint, CEO Jane Fraser told analysts Friday during the company’s first-quarter earnings call. She cited “a lot of potential growth in Asia” and plans to start “scaling up in the U.S.” by building out investment offerings and cross-selling to Citi’s new and existing clients.
There’s also “tremendous potential growth” by tapping into Citi’s private bank and family office franchises as well as referrals from other business lines, according to Fraser. “We are not shifting our strategy in wealth,” she said.
Citi will soon add Andy Sieg, who since 2017 has been president of Merrill Wealth Management, Bank of America’s wealth management division. Sieg, who is set to join Citi in September, will succeed Jim O’Donnell as Citi’s head of global wealth management.
Sieg has “deep product and digital expertise” and is “a proven people leader,” Fraser said, adding that Citi “will certainly be taking full advantage of his expertise and experience in the U.S.”
“His mandate is consistent with the strategy we laid out at investor day,” Fraser said, referring to an event held in March 2022. “So the core of the strategy will not be changing with him coming on board.”
The consolidation of Citi’s wealth management businesses into a single division was one of the first big changes that Fraser made when she moved into the CEO role in March 2021. The reorganization brought wealth services for the ultrawealthy and less affluent under one umbrella.
As part of an effort to “double down on wealth,” Citi created four wealth hubs — in London, Singapore, Hong Kong and the United Arab Emirates — and hired hundreds of advisors and relationship managers to deliver more growth. At the bank’s investor day last year, Citi said segment revenues were projected to grow by high single digits to low teens in the next three to five years.
On Friday, both Fraser and Chief Financial Officer Mark Mason mentioned several positive developments in global wealth management, including a 3% increase in the number of client advisors on staff and an uptick in new client acquisition. That client acquisition occurred in both the private bank and through Citi’s “Wealth at Work” program, which provides financial and wealth services to professionals.
In addition, there were “notable improvements” in Asia, where global wealth management revenues rose about 20% from the fourth quarter of 2022, Mason said. The company has also been adding new products, he added.
“I feel like we are positioning ourselves for when this turns,” Mason said.
When asked by an analyst if Citi has any appetite for growing its global wealth management unit via acquisition, Fraser didn’t slam the door shut on potential opportunities. But she did say the company is concentrating on growing organically by making use of existing client relationships.
“I’m sure if something very attractive comes up, we’ll be very interested and looking at it,” Fraser said. “But it’s not something right now that I think makes sense, given where we’re focused.”
For the quarter, Citi reported total revenues of $21.4 billion, up 6% year over year, excluding the impact of selling certain overseas consumer franchises. Net income was $4.6 billion, which included $953 million related to the sale of Citi’s consumer business in India, the company said.
That compares to net income of $4.3 billion during the first quarter of 2022.
Taking out those same divestiture-related impacts, expenses rose 5% from the year-ago period as the company incurred costs related to its ongoing risk management overhaul and other risk and control investments, which led to an increase in staffing, salaries and benefits.
Citi’s forecasted revenue and expense guides for the year remained unchanged.
Deposits totaled $1.3 trillion, which was relatively flat year over year, in part because some wealth customers moved their deposits into fixed-income investments, the company noted.
Citi saw just under $30 billion of deposits flow into its system between early March and the end of the month, as customers yanked their deposits out of other banks amid industry turmoil.
Many of those deposits were tied to the commercial middle market base, and while it’s too soon to tell how deposit betas will evolve, “a good portion” of those deposits will “likely be sticky,” Mason said.
Opinions expressed by Entrepreneur contributors are their own.
In a fast-paced business world, it’s easy to fall into the trap of trying to do everything as quickly as possible. However, this can lead to a lack of clarity, direction and even burnout. The most successful entrepreneurs know the power of slowing down, taking a step back and implementing a strategic plan for their businesses.
Strategic planning is the process of defining your company’s direction and making decisions on allocating your resources to pursue that direction. It’s about setting goals, identifying your strengths and weaknesses and creating a roadmap to achieve your objectives. Here are six tips to help you slow down, create a strategic plan and achieve long-term success.
Identifying your company’s purpose is the first step in creating a strategic plan. This involves answering questions such as “Why does your business exist?” and “What problem does it solve?” Understanding your company’s purpose helps you create a clear direction and focus for your business. It also helps you create a mission statement that articulates your company’s values and purpose.
One example of a company that has a clear purpose is TOMS Shoes. The company’s purpose is to “improve lives through business.” TOMS Shoes accomplishes this by selling shoes and using the proceeds to donate shoes to children in need. By having a clear purpose, TOMS Shoes has been able to create a loyal customer base that supports its mission.
Related:
2. Analyze your market
Analyzing your market is the second step in creating a strategic plan. This involves identifying your competitors, understanding their strengths and weaknesses and analyzing current trends in your industry. By doing so, you can identify opportunities and threats and create a plan that takes advantage of those opportunities while mitigating those threats.
For example, when Netflix started streaming movies and TV shows online, it disrupted the traditional video rental market. Netflix identified an opportunity to offer a more convenient and affordable way to watch movies and TV shows, and it successfully capitalized on that opportunity. By analyzing the market and identifying a need, Netflix was able to create a new business model that has revolutionized the entertainment industry.
3. Identify your strengths and weaknesses
Identifying your company’s strengths and weaknesses is the third step in creating a strategic plan. This involves analyzing your company’s internal operations and identifying areas where you excel and areas where you need to improve. By doing so, you can create a plan that leverages your strengths and addresses your weaknesses.
For example, Apple’s strength is its design and innovation capabilities. The company has consistently created products that are both aesthetically pleasing and technologically advanced. However, one of Apple’s weaknesses is its dependence on a single product, the iPhone. By identifying this weakness, Apple has been able to diversify its product portfolio and reduce its dependence on the iPhone.
Setting goals and objectives is the fourth step in creating a strategic plan. This involves defining what you want to achieve and when you want to achieve it. By setting specific, measurable, achievable, realistic and time-bound (SMART) goals, you can create a plan that is focused and effective.
For example, Google’s objective is to “organize the world’s information and make it universally accessible and useful.” To achieve this objective, Google has set specific goals, such as improving search results and expanding its product offerings. By setting clear goals and objectives, Google has been able to stay focused on its mission and achieve its objectives.
5. Create a roadmap
Creating a roadmap is the fifth step in creating a strategic plan. This involves outlining the steps you need to take to achieve your goals and objectives. A roadmap includes timelines, resources and responsibilities — and it ensures that everyone on your team is aligned and working towards the same goals.
For example, Amazon’s roadmap includes a focus on customer obsession, continuous innovation and operational excellence. To achieve these goals, Amazon has invested heavily in technology, logistics and customer service. By creating a roadmap that is aligned with its goals and objectives, Amazon has been able to grow into one of the world’s largest and most successful companies.
6. Review and adapt
Reviewing and adapting your plan is the final step in creating a strategic plan. A strategic plan is not set in stone, and it needs to be reviewed and adapted regularly to ensure that it remains relevant and effective. As your business evolves, your plan may need to change, and it’s important to be flexible.
In today’s fast-paced business environment, it’s easy to get caught up in the urgency of the moment and overlook the importance of strategic planning. However, taking the time to slow down, analyze your business and create a well-defined roadmap can set you up for long-term success. By following the six tips outlined in this article, you can identify your company’s purpose, analyze your market, identify your strengths and weaknesses, set goals and objectives, create a roadmap and review and adapt your plan regularly. Remember, strategic planning is not a one-time event, but an ongoing process that can help your business stay on track and adapt to changing circumstances. With a solid strategic plan in place, you’ll be well-equipped to tackle challenges and opportunities with confidence and clarity.
Opinions expressed by Entrepreneur contributors are their own.
“Everybody has a plan ’till they get punched in the mouth,” Mike Tyson famously said in 1987. History teaches us that we will face conflict when we don’t plan and often when we do. Over 60 years ago, President Dwight D. Eisenhower said, “Plans are worthless, but planning is everything.” We learn valuable information during the exercise of planning and not just the understanding that even the best plans can and will change.
When planning for your business battles, do you ever really know what is ahead, and most importantly, what to do? Strategic planning can help create mechanisms and mindsets to allow you to respond to the battles ahead, but it is not a one-time thing or a “set it and forget it” activity.
It is a plan that shows the way forward for your business, spelling out your company’s goals and why they are important. It can also guide you by outlining things to consider when responding to opportunities and challenges.
I believe in one- and three-year strategic plans and re-establishing them each year. Just keep in mind that a strategic plan is a roadmap for a company to achieve its goals. It’s also a tool to unite your teams, motivating them with clarity, direction and focus.
Not that you wouldn’t want to have a list of items you want to achieve long-term (I do have one), but because we live in a world that is changing faster and faster, we must adapt our plans in an agile way and harness the power of technology and systems to help us.
Companies need to be fluid and mobile. In a changing world, the future is no longer easy to predict based solely on the past. What we need is a strategy that breaks away from the old three-ring binder plan already starting to gather dust on the shelf and instead devises one that is adaptive and directive.
This is why the one-to-three-year timeframe helps and why a 10-year timeframe is obsolete before it even begins.
If strategic goals are your long-term objectives, operational goals — or, as we call them, lead measures — are the daily milestones that have to be reached to achieve them.
While aligning your business goals with your strategic goals can be hard to do every year, we must make an effort. Don’t forget that the actions you take each day should mostly roll up to achieving your goals.
For our franchise brands and us, our three main goals each year are franchisee success, revenue and profit. Each brand determines success, but revenue and profit numbers change each year. What’s important is to have your main strategic goals supported by lead measures — actionable items you will do each day and week that will lead to accomplishing the goal.
So, for example, if you are a salesperson and have a goal of $XXX sales this year (revenue), what do you need to do to make those sales?
Look at your sales funnel to determine the steps and the quantity of each step you need to make your goal: how many leads or prospects; how many points of contact, calls, presentations, discovery days and follow-up calls; or how many applications?
One recipe for disaster is never doing the most important things and always doing the urgent things. While balancing them, you should stay focused on the most important goals.
It’s not about “to-do” lists or checklists — it’s about your goals. The only thing worse than not having goals is having too many goals. I believe that three primary goals per year and two to three lead measures for each are good.
While there are set goals and trackable lead measures, don’t forget that there’s never only one way to get something done; there are multiple ways.
So, encourage your team members to do what they feel is right. Find out what they want to do rather than just telling them what you would do to achieve it. Weaving that strategy into your planning together will help you get better results.
In The Power of Positive Leadership, author Jon Gordon famously advised us not to focus on the numbers. We must trust the process, and when we keep doing things the right way, the numbers will eventually rise, those wins will come, and the desired outcomes will occur.
Opinions expressed by Entrepreneur contributors are their own.
The pet care industry is on a tremendous upward growth curve. More frequently than ever, human beings are bringing furry friends into their lives and discovering how quickly they become family. The business of pet care doesn’t end once someone stops by the shelter or pet store and comes home with a cute puppy. It’s far more complex than that, so it stands to reason that marketers should approach pet parents intricately.
A common marketing trend in the pet care industry is to throw all and sundry at the market and see what sticks. But, as with any other industry, understanding your customer and their needs is everything. You will miss the big catch if you’re casting your net too broadly.
Sharpen your focus with four specific strategies, and you’ll soon see your pet care company grow:
1. Personalization
Understanding the customer persona each of your products serves and crafting your brand to fit those customer profiles is key to reaching the right pet parents. Your customer may be a cat person, but is their feline friend a kitten or a senior? Do they have long fur that needs grooming or an easy-to-manage short coat? Indoor only, or do they have access to a garden? Drilling down to the depths of your customers’ needs is undoubtedly the best start to transforming your marketing strategy.
Puppies and kittens are wonderful, but that time makes up a very short period of the entire life cycle of our pets. If your pet care company markets only to this stage, you’re missing an entire segment of the market.
As pets grow, their needs change. Their food requirements are different and they interact with different toys. Dogs may attend training classes and teenage cats may need scratch posts when they start to flex those claws. Senior pets, especially, have very specific needs. Older pets have no use for toys or training clickers; the focus is on keeping this pet pain-free and relaxed in their old age. If need be, consult a veterinarian to understand the life cycle of the various types of pets you’re marketing to. Especially if you’re focused on exotic animals who may have a far shorter or longer life cycle than an average dog or cat.
3. Track like a hound
The pet care industry is quite unique, but one thing it has in common with all other industries is the need for accurate attribution. It is vital to understand how each pet parent came to be your customer, what channels they used and what marketing action causes them to move through the sales funnel.
It’s also important to avoid making any assumptions about your customers based on their last known interactions with your business. Monitor their movements and reactions to your campaigns carefully to understand what drives them.
If there is one aspect of attribution that is almost always forgotten, it is telephone calls. Pet parents have questions. They want to be 100% sure that what they’re buying for Tiger or Fido is the right fit. And you can be guaranteed that a vast majority of these customers will want to speak with a human being to assure them of this. Telephone calls are a vital part of the sales process, regardless of whether the person on the line is inquiring or complaining. If you aren’t tracking phone calls, you’re missing an entire leg of your customer’s journey.
There are no one-size-fits-all marketing campaigns in the pet care industry. What resonates deeply with one pet parent may mean nothing to another, so getting creative with your campaigns is vital.
Just like human parenting, parts of the pet parent journey often don’t get discussed. You might be surprised how many customers will resonate with a campaign around less-discussed issues like separation anxiety or bladder weakness.
The tail end
Although these marketing strategies are particularly helpful to the pet care industry, they apply to most industries with a few slight tweaks.
By implementing these marketing strategies, you can increase your ROI dramatically and put your marketing dollars to good use.
Pet care is an exciting and fulfilling industry to work in. If you learn to focus on your customers as individuals and understand their needs, you’ll build lifelong brand relationships with them and their furry companions.
