Citigroup Considers Sale Of Japan Retail Business

Tom Burroughes

21 August 2014

is looking at the option of selling its Japanese retail unit and has approached about 10 banks as potential suitors, according to media reports that quoted unnamed sources.

A report said the US bank is examining the option because Japan's banking industry suffers from weak loan demand and falling interest margins, notwithstanding a recent revival in the state of the Asian country’s economy. One report by Reuters said the bank has decided to quit the retail business as part of a cost-cutting measure. It quoted an unnamed source. Citibank Japan has 33 branches and $35 billion of deposits.

Citigroup declined to comment to WealthBriefingAsia on the matter.

Citigroup has had a difficult history in Japan in recent years. 10 years ago, it was forced to shut its private banking operation in the country due to lapses concerning anti-money laundering regulations. Japan’s private banking industry remains heavily dominated by domestic players although some firms, such as Credit Suisse, have established operations in the country.