Citigroup is exploring the possibility of downsizing its consumer business worldwide with an eye on selling some of its businesses in the Asia Pacific region.
Consumer banking units in South Korea, Thailand, the Philippines and Australia were named for potential divesture, according to a «Bloomberg» report citing unnamed sources. The Mexico consumer unit is also being reviewed, though a sale is less likely.
No decisions have been made and there is still a possibility that no divestitures will be made.
Asia Refocus
While Citi may potentially exit some markets in Asia, it could signal sharpened focus in other ones.
In Singapore, the bank recently rolled out its largest wealth advisory hub with a 30,000 square feet space that can house over 300 relationship managers and product specialists. Citi aims to double its wealth management market share and boost clients by double-digit percentages in the coming years.
In rival hub Hong Kong, net new money inflows soared 44 percent in 2020 with the wealth management (9 percent), institutional (10 percent) and treasury (5 percent) business all seeing positive revenue growth.
Profit Plunge
Globally, the bank saw profits plunge 41 percent to $4.6 billion with a 10 percent drop in revenues to $16.5 billion. Outgoing chief executive Michael Corbat subsequently saw his compensation slashed by 21 percent to $19 million.
«As our incoming CEO Jane Fraser said in January, we are undertaking a dispassionate and thorough review of our strategy, including our mix of businesses and how they fit together,» according to a spokesperson for the bank.
«As you would expect, many different options are being considered and we will take the right amount of time before making any decisions.»
