SHANGHAI - Citi announced today that it will wind down its consumer banking business in China. Citi announced its 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.
Re-disseminated by The Asian Banker