Ending its consumer banking operations in China is the latest step in Citi’s planned retreat from the business in Asia. However, Citigroup will continue to offer consumer services in Hong Kong and Singapore
As reported by Reuters, Citigroup will end up its consumer banking operations in mainland China. The move will affect about 1,200 local employees, who might still have options to continue to work at other Citi locations.
Back in 2021, the bank shared its plans to wind up most of its retail operations in Asia and relocate the resources to wealth management and corporate customers. At the same time, the US-based bank will continue to operate in Hong Kong, Singapore, the UK and the UAE, as a means to attract wealthy clients.
The Citi bank doesn’t expect the end of consumer services in the region to affect its financial results negatively. After all, it was not very competitive in these markets. Besides, Citi will keep its institutional business in China.
This January, Citi agreed to sell its consumer banking franchises in Indonesia, Malaysia, Thailand and Vietnam. Before that, the bank sold its Philippine consumer arm last December. According to recent public announcements, Citi also plans to wind down the consumer business in South Korea, Mexico and its overall presence in Russia.