Citigroup Inc. is advancing plans to exit its consumer banking business in China, a move that will affect about 1,200 employees in the country.
The New York bank said Thursday that it will begin actions to wind down the consumer banking operations, including pursuing sales of portfolios within the business.
Citi announced plans in April 2021 to exit consumer franchises in more than a dozen markets worldwide, including China, to focus on wealth management and other businesses. It has since signed sales deals in nine markets, with deals closed in Australia, the Philippines, Thailand, Malaysia and Bahrain.
The third-largest U.S. bank by assets said in a statement Thursday that it doesn’t expect the move in China will be material to results of operations and financial conditions, and that it will explore options for affected employees to continue working with the bank.
Products and channels affected by the exit include deposits, insurance, mortgages, investments, loans and cards, it said. The move doesn’t affect Citi’s institutional business in China.
“While we explored multiple strategic options for our China consumer business over the past several months, we believe that this path makes the most sense,” said Titi Cole, Citi’s chief executive of legacy franchises.
The strategy shift to exit from the consumer franchises in select overseas markets, and scale up wealth management offerings, was one of the first big changes under Citigroup Chief Executive Jane Fraser, who took the top job at the company in early 2021.
This story has been published from a wire agency feed without modifications to the text
Source: livemint.com
