Citi Terminates Korean Consumer Banking
NEW YORK, October 25, 2021– (COMMERCIAL THREAD) – Citi today announced that it will end its consumer banking business in Korea as part of the bank’s strategic actions to refocus its Global Consumer Bank presence in Asia and the EMEA region on four centers of wealth: Singapore, Hong Kong, the United Arab Emirates and London, and continues to release its consumer franchises in 13 markets in the two regions. Even with the liquidation, the outflows from these mainstream franchises are capital accretive and are still expected to release approximately $ 7 billion of allocated tangible common stock over time, of which $ 2 billion is tied to Korea’s liquidation.
In its remaining consumer markets in the regions, Citi is pursuing options, including sales of franchises to consumers, with a focus on optimal results for its employees, customers and shareholders. Conversations with potential buyers continue with keen interest from a wide range of bidders.
“We continue to make progress in updating our strategy, which allows us to increase the capital that we return to our shareholders over time,” said Mark Mason, CFO of Citi. “In Asia and the EMEA region, we will focus our resources on higher yielding institutional enterprises and double our wealth, where we have distinct competitive advantages and significant growth potential. “
An amendment to the recently tabled Form 8-K Current Report will be filed as part of the liquidation plan as soon as Citi is able to reasonably estimate the liquidation costs and related costs consisting of termination benefits and related costs.
The decision to shut down consumer activities in Korea has received all necessary Board approvals. Citi Korea Inc will work closely with regulators during the process to ensure minimal inconvenience to customers. Citi Korea Inc will provide its services without interruption for existing contracts until such contracts expire or terminate, while new sales for all consumer banking products will be stopped.
Citi will continue to contribute to the development of the Korean financial market by investing and developing its leading institutional franchise in the country. Citi Korea’s Institutional Business provides a full range of investment and banking services to businesses, banks, governments and institutional investors in Korea, including capital markets and business advisory.
Certain statements contained in this press release are “forward-looking statements” within the meaning of the rules and regulations of the United States Securities and Exchange Commission (SEC). These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. These statements are not guarantees of future results or events. Actual results, capital and other financial conditions may differ materially from those included in these statements due to various factors. These factors include, among others, the successful liquidation and closure of consumer banking in Korea, including on schedule, macroeconomic and local market conditions, consumer preferences, and the caveats included in this release. These factors also include those contained in documents filed by Citi with the SEC, including, but not limited to, the “Risk Factors” section of Citi’s Form 10-K 2020. All forward-looking statements made by or on behalf of Citi speak only as of the date on which they are made, and Citi does not undertake to update any forward-looking statements to reflect the impact of circumstances or events occurring after the date the forward-looking statements were made.
Citigroup, the world’s largest bank, has approximately 200 million accounts receivable and operates in more than 160 countries and jurisdictions. Citigroup offers consumers, businesses, governments and institutions a wide range of financial products and services, including consumer banking and credit, business and investment banking, securities brokerage, financial services transaction and wealth management.
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