Corbat, who has lead Citigroup for eight years, and spent more than four decades with the group, will retire from both his role, and the board of directors, in February, when Fraser, who has been with the bank for 16 years, assumes her new role.
"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. "Across our businesses, we made investments in products where we saw opportunities for growth and Citi has regained its place as a leader in banking."
"We doubled down on our global network, making it indispensable for our clients and gained significant share across our markets and banking franchises," he added. "In consumer banking, we rationalized our footprint and embraced the push to digital, making it a centerpiece of our branch-lite footprint and we now deliver best-in-class products and experiences to our customers."
Citigroup shares were marked 0.2% higher in early trading Thursday to change hands at $51.51 each, pegging their year-to-date decline at around 36%.
Fraser, who started her career at Goldman Sachs, will become the first woman to lead a major U.S. bank, after narrowly missing out on the CEO role at Wells Fargo last year, which was ultimately given to current boss Charles Scharf.
Citigroup said profits for the three months ending in June, its last quarterly report, fell 72.6% from last year to 50 cents per share, but still came in well ahead of the Street consensus forecast of 29 cents per share, as a surge in trading revenues helped offset a steep rise in credit loss provisions.
Group revenues, Citigroup said, rose 5.3% to $19.77 billion, again topping analysts' estimates of a $19.1 billion.
Citigroup said its credit loss provision for the end of the quarter was $26.4 billion, up from $12.5 billion at the end of the same period last year, while credit losses for the quarter were pegged at $2.21 billion. The quarterly credit loss provision total was $7.9 billion, Citigroup said.
Capital markets trading revenues, however, were solid, with fixed income rising 68% to $5.6 billion and investment banking up 37% to $1.8 billion.