Citigroup Inc plans to exit retail banking in 13 markets across Asia, and the region of Europe, the Middle East and Africa.
The bank would instead operate its consumer-banking franchise in both regions from four wealth centers in Singapore, Hong Kong, the United Arab Emirates and London, it said yesterday in a statement.
The move is part of an ongoing review of the company’s strategy by chief executive officer Jane Fraser, who took over last month.
Photo: Bloomberg
“This positions us to capture the strong growth and attractive returns the wealth-management business offers through these important hubs,” Fraser said.
Citigroup is to exit its consumer franchises in Taiwan, Australia, Bahrain, China, India, Indonesia, South Korea, Malaysia, the Philippines, Poland, Russia, Thailand and Vietnam.
The firm would continue to offer products in those markets to customers of its institutional clients group, which houses the private bank, cash-management arm, and investment-banking and trading businesses.
The withdrawal came as Citigroup reported record quarterly profit of US$7.94 billion, or US$3.62 per share, boosted by the flurry of blank-check companies it helped take public in the first quarter.
“While the other 13 markets have excellent businesses, we don’t have the scale we need to compete,” 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.”
Yesterday, the Financial Supervisory Commission said it has been informed by Citibank Taiwan Ltd (花旗台灣) about its parent company’s latest decision and that the bank would find a buyer for its consumer banking business in Taiwan.
Citibank Taiwan chairman Paulus Mok (莫兆鴻) told the commission that exiting Taiwan’s consumer banking market was a global strategy by its parent company and “had nothing to do with Taiwan’s business environment,” Banking Bureau Director-General Sherri Chuang (莊琇媛) said.
“It is not clear when the bank will sell its consumer banking business in Taiwan, but we will ensure that the rights of its clients, employees and consumers are protected,” Chuang said.
The bank might sell its consumer banking operations as a package, including the credit card business, wealth management business and the bank branches, she said.
The transaction could be similar to when Australia and New Zealand Banking Group Ltd sold its retail and wealth management businesses to DBS Bank Ltd, she said, adding that a transaction would need the commission’s approval.
Citibank is currently the largest foreign bank in Taiwan in terms of credit card business, commission data showed.
FREEDOM OF NAVIGATION: The UK would continue to reinforce ties with Taiwan ‘in a wide range of areas’ as a part of a ‘strong unofficial relationship,’ a paper said The UK plans to conduct more freedom of navigation operations in the Taiwan Strait and the South China Sea, British Secretary of State for Foreign, Commonwealth and Development Affairs David Lammy told the British House of Commons on Tuesday. British Member of Parliament Desmond Swayne said that the Royal Navy’s HMS Spey had passed through the Taiwan Strait “in pursuit of vital international freedom of navigation in the South China Sea.” Swayne asked Lammy whether he agreed that it was “proper and lawful” to do so, and if the UK would continue to carry out similar operations. Lammy replied “yes” to both questions. The
‘OF COURSE A COUNTRY’: The president outlined that Taiwan has all the necessary features of a nation, including citizens, land, government and sovereignty President William Lai (賴清德) discussed the meaning of “nation” during a speech in New Taipei City last night, emphasizing that Taiwan is a country as he condemned China’s misinterpretation of UN Resolution 2758. The speech was the first in a series of 10 that Lai is scheduled to give across Taiwan. It is the responsibility of Taiwanese citizens to stand united to defend their national sovereignty, democracy, liberty, way of life and the future of the next generation, Lai said. This is the most important legacy the people of this era could pass on to future generations, he said. Lai went on to discuss
MISSION: The Indo-Pacific region is ‘the priority theater,’ where the task of deterrence extends across the entire region, including Taiwan, the US Pacific Fleet commander said The US Navy’s “mission of deterrence” in the Indo-Pacific theater applies to Taiwan, Pacific Fleet Commander Admiral Stephen Koehler told the South China Sea Conference on Tuesday. The conference, organized by the Center for Strategic and International Studies (CSIS), is an international platform for senior officials and experts from countries with security interests in the region. “The Pacific Fleet’s mission is to deter aggression across the Western Pacific, together with our allies and partners, and to prevail in combat if necessary, Koehler said in the event’s keynote speech. “That mission of deterrence applies regionwide — including the South China Sea and Taiwan,” he
UNPRECEDENTED: In addition to the approved recall motions, cases such as Ma Wen-chun’s in Nantou are still under review, while others lack enough signatures The Central Election Commission (CEC) announced yesterday that a recall vote would take place on July 26, after it approved the first batch of recall motions targeting 24 Chinese Nationalist Party (KMT) lawmakers and Hsinchu Mayor Ann Kao (高虹安). Taiwan is in the midst of an unprecedented wave of mass recall campaigns, following a civil society push that echoed a call made by Democratic Progressive Party (DPP) caucus whip Ker Chien-ming (柯建銘) in January to initiate signature drives aimed at unseating KMT legislators. Under the Civil Servants Election and Recall Act (公職人員選舉罷免法), Taiwanese can initiate a recall of district-elected lawmakers by collecting
RSS