Citi changes focus to wealth units
Bank exits retail banking in 13 countries, mostly in Asia
We see opportunities to gain share in our institutional businesses in Asia. JANE FRASER CHIEF EXECUTIVE, CITI
Citi remains fully committed to Thailand and Asia-Pacific even as it announced plans to exit consumer banking in Thailand and 12 other countries.
This week, the bank announced it would exit consumer banking in Australia, Bahrain, China, India, Indonesia, South Korea, Malaysia, the Philippines, Poland, Russia, Taiwan, Thailand and Vietnam.
Consumer business in Asia, the Middle East and Asia would be operated through wealth centres in Singapore, Hong Kong, the United Arab Emirates and London.
Jane Fraser, who took over as Citi chief executive last month, said the changes were part of a “clinical” review of the bank’s businesses and where it saw its strengths in the future.
The bank will increase its focus on wealth management, which currently generates US$6.6 billion in revenues on $750 billion in assets under management, she said. The move comes as Citi announced its highest quarterly profit on record of $7.9 billion.
Mrs Fraser said Citi remains committed to maintaining its global network and institutional banking franchises in all the affected markets.
“Let me be clear about one thing: Citi will continue to serve our institutional clients in these 13 markets, so our global network isn’t changing at all,” she said in a statement.
“We have a leading franchise in Asia, and it’s central to our success going forward. We see opportunities to gain share in our institutional businesses in Asia, especially by investing in commercial banking so we can support the emerging market champions that are tomorrow’s multinational juggernauts.”
Peter Babej, Asia-Pacific chief executive for Citi, said the region remains critical to the bank’s strategy.
“Asia-Pacific is an integral part of our global network, and a key driver of Citi’s growth and value proposition. We will continue to invest in our network and support clients across all our markets delivering Citi’s unique global capabilities,” he said.
Tibor Pandi, Citi Thailand country officer, said there would be no immediate impact on operations or staff.
“We will continue to serve our clients with the same care, empathy and dedication that we do today,” he told the Bangkok Post.
Mr Pandi stressed that the decision did not reflect the bank’s outlook on the markets affected, but is instead aimed at refocusing investment and resources on “businesses that can drive stronger growth, deliver scale and enhance returns over the long run”.
“This was a difficult decision as we have an attractive and well-run consumer businesses division. We have been in Thailand for over 50 years, with dedicated teams and a strong client base who have contributed to our success,” he said.
Mr Tibor said the changes are part of the bank’s moves to “deliver a simpler firm, which will make us easier to manage, speed up our delivery, and support our global push for excellence.”
Citi Thailand employs 1,207 people in consumer banking, with another 607 in operations and technology, servicing both the consumer and corporate businesses.
Vira-Anong Phutrakul, Thailand consumer business manager for Citi, said it was premature to discuss the impact of the strategic shift on jobs.
“There is much we do not know, but we can say two things with certainty: we will continue to treat everyone fairly and with respect; and we will be transparent and communicate information to everyone quickly,” she said.