Citigroup Inc., the U.S. bank that earns most of its revenues from lending money in overseas markets, has announced that it is planning to exit the business of consumer banking from 11 markets. The decision is believed to be a part of company CFO Michel Corbat’s efforts in simplifying the firm and boosting its returns.
The sale of the consumer banking businesses, a major part of which is already under way, could be completed by the end of the next year, the bank stated in an official statement it published today.
The business units on sale will be moved to the company’s unwanted assets for the purpose of reporting during the first quarters of 2015.
Corbat stated in a statement that his only prospect is towards simplifying Citigroup and allocating the company’s finite resources to where they can harness the best possible returns for company’s shareholders. He also added that the company has made good progress in optimizing the 11 consumer markets it now plans to sell. However, it believes that these businesses will be able to achieve stronger performance in countries where the scale and network of the company will provide the businesses a competitive advantage.
With this decision, Citigroup will exit its consumer banking business in countries including, El Salvador, Peru, Nicaragua, Japan, Guam, the Czech Republic, Hungary, Panama, Guatemala, Costa Rica, El Salvador, and Egypt. According to the statement, the company will also shut its consumer-finance business in Korea. But in all these places, the company will continue to work with its institutional clients.