Citigroup has said it will close retail banking operations in 13 countries across Asia and parts of Europe, including Bahrain, to focus more on wealth management outside the US.
This move, one of the first big strategic moves made by CEO Jane Fraser, who took over in February, will also cover the consumer franchises in Australia, China, India, Indonesia, Korea, Malaysia, the Philippines, Poland, Russia, Taiwan, Thailand and Vietnam. Citigroup’s Institutional Clients Group will continue to serve clients in, said a statement.
Tweeting on the decision, CEO Jane Fraser said: “Let me be clear on one very important point: Citi will continue to invest behind and serve our institutional clients in these thirteen markets.”
Meanwhile, Citigroup reported a net income for the first quarter 2021 of $7.9 billion, or $3.62 per diluted share, on revenues of $19.3 billion.
This compared to net income of $2.5 billion, or $1.06 per diluted share, on revenues of $20.7 billion for the first quarter 2020.
Revenues decreased 7% from the prior-year period, as higher revenues in Investment Banking and Equity Markets were more than offset by lower rates, the absence of prior
year mark-to-market gains on loan hedges within the Institutional Clients Group (ICG), and lower card volumes in Global Consumer Banking (GCB). Net income of $7.9 billion increased significantly from the prior-year period driven by the lower cost of credit.
Earnings per share of $3.62 increased significantly from the prior-year period, reflecting the increase in net income, as well as a slight decline in shares outstanding.
Citigroup announced strategic actions in Global Consumer Banking – as part of an ongoing strategic review – which will allow Citi to direct investments and resources to the businesses where it has the greatest scale and growth potential. Citi will focus its Global Consumer Bank presence in Asia and EMEA on four wealth centers — Singapore, Hong Kong, the UAE and London.
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