Citigroup Inc on Thursday announced plans to exit retail banking in 13 markets across Asia, which includes India, and Europe, the Middle East and Africa.
The statement released by the bank said that it will instead operate its consumer-banking franchise from four wealth centres in Singapore, Hong Kong, the United Arab Emirates and London.
The shift is a part of the ongoing review of the company’s strategy by CEO Jane Fraser, who took over last month. “This positions us to capture the strong growth and attractive returns the wealth-management business offers through these important hubs,” the statement quoted Fraser.
The New York-based bank will exit its consumer franchises in Australia, Bahrain, China, India, Indonesia, South Korea, Malaysia, the Philippines, Poland, Russia, Taiwan, Thailand and Vietnam.
“While the other 13 markets have excellent businesses, we don’t have the scale we need to compete,” Fraser stated. “We believe our capital, investment dollars and other resources are better deployed against higher returning opportunities in wealth management and our institutional businesses in Asia.”
However, the firm will continue to offer products in those markets to customers of its institutional clients group which comprises the private bank, cash management arm and investment banking and trading businesses.
Announcement of the exit follows the company›s reports of a record quarterly profit, augmented by the flurry of blank-check companies that it supported in taking public in the first quarter.
Citigroup has also been developing a wealth-advisory hub in Singapore on a 30,000-square-foot space, the largest of its kind for the bank, which is estimated to house more than 300 relationship managers and product specialists.