Citibank Withdraws from Korean Consumer Finance Business... Retains Corporate Finance Operations

Korea Citibank

[Asia Economy Reporter Kwangho Lee] Citibank Korea is withdrawing from the consumer finance business in Korea. However, it will maintain its corporate finance and investment banking (IB) divisions.

Citigroup announced on the 15th, along with its first-quarter earnings report this year, that it will focus its consumer finance operations in four countries: Singapore, Hong Kong, the United Arab Emirates, and the United Kingdom.

Thirteen countries, including Korea, Australia, Bahrain, China, India, Indonesia, Malaysia, the Philippines, Russia, Taiwan, Thailand, Vietnam, and Poland, will discontinue consumer finance operations.

Jane Fraser, CEO of Citigroup, stated, "We have decided to operate personal banking branches only in four centers across Asia and EMEA (Europe, Middle East, and Africa)." She added, "We strategically believe this will enable Citigroup to achieve growth and profitability going forward."

Accordingly, Citibank Korea will operate only its corporate finance and investment banking divisions and will no longer continue consumer finance.

This decision appears to be largely influenced by the fact that Citibank Korea's consumer finance division's net income has decreased by nearly 80% over the past two years.