For the first time, a woman will lead one of America's largest banks.

Citigroup (C -1.49%) has announced that CEO Michael Corbat will retire from the bank after 37 years at the company, the last eight of which have been as CEO. Corbat will officially leave the bank in February of next year.

The first U.S. bank to be considered a "megabank," Citigroup also announced that Jane Fraser, the company's current president and CEO of global consumer banking, will become the new CEO once Corbat retires.

Generic bank facade.

Image Source: Getty

Fraser has worked at Citi for 16 years. Prior to her current role, she served in a number of senior positions for the bank, including CEO of Citi's Latin American region; CEO of consumer and commercial banking at CitiMortgage; and CEO of Citi's private bank. Before Citigroup, she was a partner at McKinsey & Company and started her career at Goldman Sachs (GS 0.03%).

"I am honored by the Board's decision and grateful to Mike for his leadership and support," Fraser said in a statement. "The way our team has come together during this pandemic shows what Citi is made of. Our balance sheet is strong and our commitment to serving our clients and communities is even stronger."

Corbat has been at Citi since 1983 before it officially became Citigroup. Before becoming CEO, he served as CEO of the company's Europe, Middle East and Africa division; CEO of Citi Holdings; and CEO of Citi's global wealth management division .

"I am extremely proud of what we have accomplished in the past eight years. We completed our transformation from the financial crisis and emerged a simpler, safer and stronger institution," Corbat said in a statement.

He added: "I have worked with Jane for many years and am proud to have her succeed me. With her leadership, experience and values, I know she will make an outstanding CEO."