16th April, 2021
Citigroup is going to consolidate its consumer banking business from 13 countries, including India and China. According to the news AAFP, the US multinational banking and financial services group has taken this decision with the intention of focusing more on wealth management in the future. According to the agencies' report, the bank will now focus primarily on only four countries - Singapore, Hong Kong, London, and the United Arab Emirates - in terms of global consumer banking business.
Citigroup CEO Jane Fraser said Citigroup would leave China, India, and 11 other retail markets, as it did not have a large scope of operations for these countries to remain in the banking business. The other 11 countries affected by Citigroup's decision are Australia, Bahrain, Indonesia, South Korea, Malaysia, the Philippines, Poland, Russia, Taiwan, Thailand, and Vietnam. Jane Fraser, who became CEO in March, said the group would now focus more on wealth management, where there is a lot of growth potential.
Fraser said the group would double focus on the wealth management sector. Most of the 13 countries that Citigroup is phasing out are from Asia. Citigroup had a turnover of $ 6.5 billion in 2020 in these Asian countries. According to the report by the news agency AFP, the group has 224 retail branches in these countries, with deposits of $ 123.9 billion.
According to the news agency Reuters, Citigroup has not taken this decision because of any losses. It made a big profit of $ 7.9 billion in the first quarter of the current year. Citibank is one of the largest foreign banks in Singapore. The bank has hired around 8,500 employees in Singapore. They also include contractual employees. The credibility of this bank can be gauged from the fact that in 2015, the Monetary Authority of Singapore named it as an important bank.
Citigroup Group has decided to cease banking operations in Australia, Bahrain, Indonesia, South Korea, Malaysia, Philippines, Poland, Russia, Taiwan, Thailand, and Vietnam, apart from India and China, according to news agency AFP. Jane Fraser said that in countries where the bank has a small business, it is ready to move out of those markets.