Under CEO Jane Fraser, the US firm has been selling off retail banking in more than a dozen countries in order to focus more on higher-margin business areas such as wealth management.

Citigroup yesterday announced that it will close its consumer banking business in China as part of its plan to spin off retail banking activities in more than a dozen countries as it pivots towards areas such as wealth management. 

The US banking group initially flagged its plan to exit China consumer banking in April 2021. It is shedding retail banking in 14 markets in Asia, Europe, the Middle East and Africa and Mexico. 

The group said it will pursue sales of its consumer banking business – although it has not set out at what stage this process has reached. Citigroup said the announcement did not include Citigroup’s institutional business in the country. About 1,200 employees in China will be affected.

The cost of the wind down won’t have a material impact on Citigroup’s operational results, it said. It will start on the wind down and continue to engage with the relevant regulatory bodies. 

Referring to the 1,200 affected staff, Citigroup said it is exploring options for employees who wish to continue to work at Citigroup in China or across the bank’s global network. 

Consumer products and channels affected by the exit include deposits, insurance, mortgages, investments, loans, and cards.

“While we explored multiple strategic options for our China consumer business over the past several months, we believe that this path makes the most sense and we are focused on a seamless transition for our clients, partners and colleagues,” Titi Cole, the bank’s chief executive of legacy franchises, said.

"We have been in China since 1902 and we will continue to support our clients in Citi’s Global Wealth Management business and market-leading institutional franchise in the country,” Christine Lam, CEO of Citi China said.

Citigroup has signed agreements to sell retail banking in nine markets, closing deals in five markets, including Australia, the Philippines, Thailand, Malaysia and Bahrain. Previously-announced wind downs of Citigroup’s consumer business in South Korea and its overall presence in Russia are in progress. In November, Citigroup completed its sale of the bank’s Malaysia and Thailand retail banking and consumer credit card businesses to United Overseas Bank subsidiaries, including the transfer of over 3,000 related staff.