As part of the strategic review, Citi intends to close its consumer banking operations in 13 markets across Asia and EMEA regions
Citigroup has reported a net income of $7.9bn, or $3.62 per diluted share, for the first quarter (Q1) of 2021, a 216% increase compared to $2.5bn, or $1.06 per diluted share, for the corresponding quarter in 2020.
The bank reported net revenues of $19.3bn for Q1 2021, a 7% decrease compared to $20.7bn for the same period last year.
Its Global Consumer Banking (GCB) business reported net revenues of $7.03bn for Q1 2021, a 14% decrease compared to $8.17bn for Q1 2020.
Citi attributed the fall in net revenues to lower rates, lack of mark-to-market gains on loan hedges within the Institutional Clients Group (ICG) and lower card volumes in GCB.
Citi CEO Jane Fraser said: “We reported record net income driven by strong performance in our Institutional Clients Group and a significant release from our Allowance for Credit Losses, as a result of the improving economic outlook.
“While Global Consumer Banking revenues were down quarter-over-quarter as a result of the pandemic, this is the healthiest we have seen the consumer emerge from a crisis in recent history.
“Our capital levels remained strong and stable, allowing us to respond to the needs of our clients and return capital to our shareholders.”
Citi to close consumer franchises in 13 markets across Asia and EMEA
Citigroup is set to restructure its Global Consumer Banking business, as part of its ongoing strategic review.
As part of the strategic review, the bank intends to close its consumer banking operations in 13 markets across Asia and EMEA regions.
Citi will close consumer franchises in Australia, Bahrain, China, India, Indonesia, Korea, Malaysia, the Philippines, Poland, Russia, Taiwan, Thailand and Vietnam.
Fraser added: “As a result of the ongoing refresh of our strategy, we have decided that we are going to double down on wealth. We will operate our consumer banking franchise in Asia and EMEA solely from four wealth centres, Singapore, Hong Kong, UAE and London.
“This positions us to capture the strong growth and attractive returns the wealth management business offers through these important hubs. While the other 13 markets have excellent businesses, we don’t have the scale we need to compete.
“We believe our capital; investment dollars and other resources are better deployed against higher returning opportunities in wealth management and our institutional businesses in Asia.”