Citigroup plans to quit UK retail bank as part of strategic update

Citigroup plans to quit UK retail bank as part of strategic update

by Mahnaz Yasmin

(Reuters) – Citigroup said on Wednesday it plans to close its UK retail bank with the aim of further streamlining operations as part of its chief executive’s strategy.

The move will help Citi improve its focus on services for wealthy clients, the bank said, adding that it has asked some of its retail customers to switch to its own bank.

The lender added that the liquidation of the British retail bank, which consists of only one branch, will not have any material financial impact on the company.

β€œRetail banking usually has a much worse profit margin than wealth management,” said Siddharth Sinjay, chief investment officer at the New York-based investment firm. So it would make sense for them to focus solely on these businesses with a higher return on capital. “. Ironold Capital.

After taking the top job last year, CEO Jane Fraser has vowed to simplify City Group (NYSE:) by exiting non-core businesses, including consumer franchises in 13 markets in Asia, Europe, the Middle East and Africa.

Fraser has been tasked with transforming businesses whose stock prices have fallen behind rivals such as JPMorgan Chase & Co (NYSE:) and Bank of America (NYSE:) during the eight-year tenure of her predecessor, Michael Corbat.

On the other hand, JPMorgan and Goldman have expanded their UK operations in recent years. In May, JPMorgan executives said consumer bank Chase had attracted more than half a million customers in Britain.

Goldman also offers savings accounts under Marcus’ consumer arm in Britain.

Citi’s latest announcement comes months after the bank said it would exit its consumer banking business, Citibanamex in Mexico, ending its 20-year retail presence in the country.

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The UK’s plans were first reported by the Financial Times, which said Citi was not considering selling its UK retail operations.

Citi said the bank had started consultations with UK retail banking staff.

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