The Chinese unit of Citigroup is on track to suspend its consumer banking operations.
On 15 December Citi announced that it would gradually shut its consumer banking operations in China as part of an ongoing restructuring of its global consumer banking operations.
“Over the past several months, we have carefully assessed the feasibility of multiple plans, and finally confirmed the gradual shut down of Citi’s consumer banking operations [in China],” Citi said.
“As part of the wind down process, Citi will also continue to actively pursue sales of portfolios within its Chinese consumer banking business. Today’s announcement does not include Citi’s institutional business in the country.”
The move comes after Citigroup first announced in April 2021 that it would implement a strategic adjustment and transformation of its global consumer banking operations, flagging their withdrawal from a total of 14 markets including China.
At the time Citigroup’s CEO Jane Fraser said that the group lacked the necessary scale to compete in the consumer banking markets of certain regions, and that wealth management and institutional operations in Asia presented more opportunities for higher returns.
Citi said that it would pursue continued engagement with regulators in order to facilitate the wind down of consumer banking in China, in move which is expected to affect around 1,200 employees.