Shangai - Citi announced today that it will wind down its consumer banking business in China. Citiannouncedits plan to exit China consumer banking in April 2021, which is part of its broader global strategy refresh to exit consumer franchises in 14 markets in Asia, Europe, Middle East and Africa and Mexico. As part of the wind down process, Citi will also continue to actively pursue sales of portfolios within its Chinese consumer banking business. Today’s announcement does not include Citi’s institutional business in the country.
HIGHLIGHTS
- Reaffirms Commitment to Wealth Management and Market-Leading Institutional Business in Country
Shangai - Citi announced today that it will wind down its consumer banking business in China. Citiannouncedits plan to exit China consumer banking in April 2021, which is part of its broader global strategy refresh to exit consumer franchises in 14 markets in Asia, Europe, Middle East and Africa and Mexico. As part of the wind down process, Citi will also continue to actively pursue sales of portfolios within its Chinese consumer banking business. Today’s announcement does not include Citi’s institutional business in the country.
The cost of the wind down is not expected to be material to both Citi’s results of operations and financial conditions including the projected capital impact from the overall strategy refresh. The wind down will be carried out in compliance with applicable regulations and Citi will honor its obligations to clients, employees and partners.
Citi will commence actions to facilitate the wind down of consumer banking including continued engagement with regulators. The wind down is expected to affect approximately 1,200 employees in China. Citi will work closely with stakeholders during the process and ensure minimal inconvenience for clients. The bank will also explore options for those employees who wish to continue to work at Citi in China or across the bank’s global network. Consumer products and channels affected by the exit include deposits, insurance, mortgages, investments, loans and cards.
“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 and we are focused on a seamless transition for our clients, partners and colleagues,” said Titi Cole, Citi’s CEO of Legacy Franchises.
"We have been in China since 1902 and we will continue to support our clients in Citi’s Global Wealth Management business and market leading institutional franchise in the country,” said Christine Lam, CEO of Citi China.
To date, sales agreements have been signed in nine markets and have closed in five markets including Australia, the Philippines, Thailand, Malaysia and Bahrain. Previously announced wind downs of Citi’s consumer business in Korea and overall presence in Russia are in progress.
Citi
Citi is a preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in its home market of the United States. Citi does business in nearly 160 countries and jurisdictions, providing corporations, governments, investors, institutions and individuals with a broad range of financial products and services.
Additional information may be found atwww.citigroup.com| Twitter:@Citi| YouTube:www.youtube.com/citi| Blog:http://blog.citigroup.com| Facebook:www.facebook.com/citi| LinkedIn:www.linkedin.com/company/citi.
Media Contacts:
James Griffiths, Hong Kong
852 2868 7668
james.a.griffiths@citi.com
Danielle Romero Apsilos, New York
212 816 2264
danielle.romeroapsilos@citi.com
Investor Contact:
Jennifer Landis
212 559 2718
jennifer.am.landis@citi.com
I'm well-versed in finance and banking, having followed industry developments closely. Let's break down the key concepts in the article to ensure a comprehensive understanding:
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Citi's Exit Strategy: Citi, a major global banking entity, disclosed its plan to discontinue its consumer banking operations in China. This decision was part of a broader strategy to withdraw from consumer markets in 14 different regions, including Asia, Europe, the Middle East, Africa, and Mexico, aiming to focus on other areas of its business.
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Strategic Refresh: Citi initiated a global strategy refresh in April 2021, signaling its intent to move away from consumer-focused operations in several international markets, concentrating instead on institutional and wealth management services.
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Business Wind Down and Sales Pursuits: Citi's move involves winding down its consumer banking operations in China, including the active pursuit of selling off segments of its consumer banking portfolios in the country. This process is carefully aligned with regulatory compliance and the fulfillment of obligations to clients, employees, and partners.
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Impact and Considerations: The decision is not expected to significantly impact Citi's financial conditions, with the wind-down costs projected to be non-material. However, it is anticipated to affect around 1,200 employees in China. Citi intends to facilitate a smooth transition for clients and explore alternative opportunities for affected employees within the organization.
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Continued Business Focus: Despite the exit from consumer banking, Citi reaffirms its commitment to its institutional business and wealth management operations in China. This reassurance reflects the bank's determination to support its clients in those sectors while maintaining a global network presence.
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Global Progress of Exit Plan: The article notes that Citi has already signed sales agreements in multiple markets, with closures completed in several countries, including Australia, the Philippines, Thailand, Malaysia, and Bahrain. Moreover, ongoing exit plans for consumer banking in Korea and the overall presence in Russia are underway.
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Citi's Profile: Citi is a distinguished global banking institution, recognized for its comprehensive financial services catering to corporations, governments, investors, institutions, and individuals across nearly 160 countries and jurisdictions. While the focus narrows on its institutional and wealth management segments, Citi remains a prominent financial partner worldwide.
By comprehensively grasping these concepts, one can discern Citi's strategic pivot and the nuanced considerations involved in its decision to withdraw from specific consumer banking markets while reinforcing other critical segments of its global operations.
