Citigroup cuts presence in some cities
Print Edition
CITIGROUP Inc has been quietly scaling back its consumer banking presence in some of the world’s major cities, exiting markets where it is not competitive.
In 2014, Citi retail executives went from targeting 120 of “the world’s top-150 cities” to homing in on 100 cities where the company has the greatest scale and potential. As a result, it is withdrawing from Tokyo, Lima, Panama City and Houston, for example. In the United States, it is now focused on six cities, down from 14.
While the bank has no specific plans to cut more branches in the near term, it will continue to re-evaluate its holdings, said Jonathan Larsen, who oversees Citigroup’s overseas retail branch business.
“We have to make sure that we are not subsidizing marginal operations for long periods,” Larsen said.
Cutting back in consumer banking will eat into the group’s earnings, at least in the near term. The bank is expected to book some US$800 million of restructuring charges in the fourth quarter when it posts results tomorrow.
Chief Executive Michael Corbat has announced US$2.4 billion of additional restructuring costs in the last two years. The bank hopes the spending will eventually save it some US$3.4 billion annually.
The charge, on top of a likely US$2.7 billion fee for litigation, is set to all but wipe out Citigroup’s profits for the fourth quarter.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
