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- Citi CEO said the 13 markets have an excellent business but do not have the scale to compete.
- Citi will operate the consumer banking franchise in Asia and EMEA from Singapore, Hong Kong, UAE and London.
- The company’s first quarter net income rose to US$7.94 billion following a significant release.
Citigroup Inc. on April 15 said the company would exit consumer business franchises in 13 markets across Asia and Europe, the Middle East and Africa. The announcement comes as part of a strategic review.
Citi CEO Jane Fraser said the company plans to double down on wealth management. He noted that the 13 markets do not have the scale to compete despite having an excellent business.
The company plans to operate its operate the consumer banking franchise in Asia and EMEA from wealth centers - Singapore, Hong Kong, UAE and London.
This is one of the major strategic calls taken under the leadership on Fraser, who assumed the role in February.
The affected markets include Australia, India, Indonesia, Bahrain, Korea, Malaysia, China, the Philippines, Russia, Taiwan, Poland, Thailand and Vietnam.
Citigroup Reports Strong Q1’21 Earnings
The New York-based bank’s first quarter net income rose to US$7.94 billion from US$2.54 billion in the first quarter of 2020. Earnings per share came in at US$3.62, compared to US$1.06 in the year-ago period.
Fraser attributed the increase in net income to strong performance in the company’s institutional clients group segment and a significant release of credit loss reserve amid the improving economic outlook.
Total cost of credit was negative US$2.06 billion during the quarter, against US$6.96 billion in the year-ago period.
Citi’s first quarter revenue fell 7 percent year-over-year to US$19.33 billion. Revenue in the global consumer banking segment dropped 14 percent year over year to US$7.04 billion while the revenue declined 2 percent in institutional client groups segment to US$12.2 billion. Revenue in the corporate and other division decreased 4 percent to US$70 million.
Loans totaled as US$666 billion as of March 31, down 8 percent year over year, while deposits during the end of the quarter grew 10 percent to US$1.3 trillion.
Share of Citi grew over 17 percent year to date. The stock closed at US$72.54 on Thursday.