The group, which targets high-net-worth individuals, has announced today that it will “pursue an exit” from its consumer banking business in 13 markets, including Australia, following a “strategic review”.
Instead, the group will focus on its investment and resources to the businesses that can “drive stronger growth, deliver scale and improve returns over the long run”.
In Australia, the sale of the consumer business will enable Citi to focus its investment and resources to its institutional business, which includes investment banking, capital markets and advisory, markets and securities services, commercial banking and treasury and trade solutions.
The sale of the consumer business will include mortgages, credit cards, loans, retail banking, and wealth management for high-net-worth individuals.
As part of the new strategy, the group will instead have a new consumer banking strategy for Asia and Europe, Middle East and Africa, which will focus on four wealth centres: Singapore, Hong Kong, London and UAE.
The group will service its existing clients with a full suite of products from these four hubs.
Citi Australia CEO Marc Luet said; “Citi’s consumer bank in Australia is an attractive and profitable business, employing highly skilled and dedicated team members. Citi is committed to securing the best possible outcome for our employees and our customers.”
Mr Luet confirmed that Citi has commenced a sale process of its Australian consumer business and received interest from several potential buyers. Any sale would be subject to regulatory approval.
“During the sale process, there will be no change in the way Citi serves its consumer banking customers. Consumer operations will continue to operate as they do today,” Mr Luet said.
More to come.
Annie Kane is the editor of The Adviser and Mortgage Business.
As well as writing about the Australian broking industry, the mortgage market, financial regulation, fintechs and the wider lending landscape – Annie is also the host of the Elite Broker and In Focus podcasts and The Adviser Live webcasts.