Citibank Retail Banking News Today: Citigroup on Thursday said that it was exiting from retail business in India and other 12 countries across Asia and some other parts of Europe, to focus on wealth management business, as it lacked the scale to compete in the retail space.
The decision to exit retail businesses from a few markets was one of the first decisions by newly appointed CEO Jane Fraser after she took over the US-headquartered bank in February.
“This positions us to capture the strong growth and attractive returns the wealth-management business offers through these important hubs,” Fraser said in the statement.
Citibank Retail Banking News Today: Citigroup Retail Business Exit From India, 12 other countries
Citigroup’s Institutional Clients Group will continue to serve clients in these markets, which remain important to Citi’s global network, the bank said in its statement.
The exit is part of its ongoing strategic review, in order to direct “investments and resources to the businesses where it has the greatest scale and growth potential.” Citi will now focus its Global Consumer Bank presence on four wealth centers — Singapore, Hong Kong, the UAE and London.
“While the other 13 markets have excellent businesses, we don’t have the scale we need to compete,” Citi CEO Fraser said.
“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,” she said.
The bank will now “double down on wealth,” Fraser said.
Citibank group in India was slowly increasing their weight towards wealth management business, while lowering its dependence on the retail business.
Retail banking contributed 30.6 per cent to revenue at the end of March 2020, against 37.38 per cent in 2012-13 and nearly 39.19 per cent in 2009-10.
What Is The Meaning Of Retail Banking?
Retail banking, also known as consumer banking or personal banking, is banking that provides financial services to individual consumers rather than businesses.
What Are The Example Of Retail Banking?
Services include in retail banking like checking and savings accounts, mortgages, personal loans, credit cards and consumer loan.