Borrow
Citi to exit consumer banking in Australia
US investment bank Citigroup has announced that it is pursuing an exit from the Australian market after 36 years.
Citi to exit consumer banking in Australia
US investment bank Citigroup has announced that it is pursuing an exit from the Australian market after 36 years.
Following a global review of its consumer operations, Citigroup has formally put its Australian consumer banking division up for sale, along with 12 other banks.
APRA’s monthly authorised deposit-taking institution figures showed that Citigroup’s Australian retail banking arm had a residential mortgage book of $4.1 billion and investor housing book of $2.44 billion.
The bank is the fifth largest in the Australian credit card market with 13 per cent, only trailing the big four banks.
Citi global’s chief executive, Jane Fraser, wasted little time announcing that the bank is exiting consumer operations in Australia, Bahrain, China, India, Indonesia, Korea, Malaysia, the Philippines, Poland, Russia, Taiwan, Thailand and Vietnam.
“As a result of the ongoing refresh of our strategy, we have decided that we are going to double down on wealth,” Ms Fraser said in the release. The move to focus on the remaining markets “positions us to capture the strong growth and attractive returns the wealth management business offers through these important hubs.”
Citi Australia CEO Marc 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.
Citi Australia’s consumer business encompasses credit cards, loans, retail banking, wealth management for high-net-worth individuals and mortgages. It operates a digital model, with more than 99 per cent of clients coming to Citi via digital channels. The bank is also a credit card provider for some of Australia’s leading brands.
Shares of the bank were down less than 1 per cent after climbing 3.1 per cent in the premarket.
The bank reported profit of $7.94 billion, or $3.62 a share.
Citigroup said it had released $3.9 billion in loan-loss reserves in the quarter, which resulted in a $2.06 billion gain after $1.75 billion in credit losses in the period. Analysts had expected a $393.4 million provision in the quarter.
RELATED ARTICLES
About the author
About the author
Banking
Why central banks are ditching Treasuries for gold and what it means for business leaders
Gold’s renaissance is no longer just an investor narrative; it’s a reserve‑management strategy. Multiple reports indicate central bank gold holdings now exceed US Treasuries by value for the first ...Read more
Banking
AMP Bank GO strengthens fraud protection with innovative security measures
AMP Bank GO has emerged as a formidable player in the fight against financial fraud, with its innovative security measures setting new standards in the digital banking sector. Since its launch in ...Read more
Banking
APRA’s hybrid exit is a A$43bn catalyst: who captures the flow—bank credit or private credit?
Australia’s phase-out of bank hybrids isn’t just a regulatory clean-up—it’s a forced portfolio reallocation the size of a mid-tier super fund. Read more
Banking
AMP Bank GO adds business overdraft to mobile platform for small businesses
AMP Bank has launched a business overdraft feature within its mobile-first banking platform AMP Bank GO as cash flow concerns continue to affect small business owners across Australia. Read more
Banking
Bendigo Bank named most trusted bank in Australia for 10th consecutive quarter
Bendigo Bank has retained its position as Australia's most trusted bank, according to the latest trust rankings released by research firm Roy Morgan. Read more
Banking
Account-to-account and instant payments set to reshape global payments landscape
A new report from Capgemini predicts that instant payments will account for 22% of all non-cash transactions globally by 2028, signaling a major shift in the payments industry. Read more
Banking
Powell's Jackson Hole speech to shape market expectations on rate cuts
All eyes are on Federal Reserve Chair Jerome Powell's upcoming speech at the Jackson Hole symposium, as investors anxiously await clues about the central bank's future rate decisions. Read more
Banking
Bendigo Bank economist forecasts stable rates for 2024, cuts in 2025
Bendigo Bank's Chief Economist David Robertson is maintaining his prediction that the Reserve Bank of Australia (RBA) will keep interest rates unchanged throughout 2024, with cuts likely to begin in ...Read more
Banking
Why central banks are ditching Treasuries for gold and what it means for business leaders
Gold’s renaissance is no longer just an investor narrative; it’s a reserve‑management strategy. Multiple reports indicate central bank gold holdings now exceed US Treasuries by value for the first ...Read more
Banking
AMP Bank GO strengthens fraud protection with innovative security measures
AMP Bank GO has emerged as a formidable player in the fight against financial fraud, with its innovative security measures setting new standards in the digital banking sector. Since its launch in ...Read more
Banking
APRA’s hybrid exit is a A$43bn catalyst: who captures the flow—bank credit or private credit?
Australia’s phase-out of bank hybrids isn’t just a regulatory clean-up—it’s a forced portfolio reallocation the size of a mid-tier super fund. Read more
Banking
AMP Bank GO adds business overdraft to mobile platform for small businesses
AMP Bank has launched a business overdraft feature within its mobile-first banking platform AMP Bank GO as cash flow concerns continue to affect small business owners across Australia. Read more
Banking
Bendigo Bank named most trusted bank in Australia for 10th consecutive quarter
Bendigo Bank has retained its position as Australia's most trusted bank, according to the latest trust rankings released by research firm Roy Morgan. Read more
Banking
Account-to-account and instant payments set to reshape global payments landscape
A new report from Capgemini predicts that instant payments will account for 22% of all non-cash transactions globally by 2028, signaling a major shift in the payments industry. Read more
Banking
Powell's Jackson Hole speech to shape market expectations on rate cuts
All eyes are on Federal Reserve Chair Jerome Powell's upcoming speech at the Jackson Hole symposium, as investors anxiously await clues about the central bank's future rate decisions. Read more
Banking
Bendigo Bank economist forecasts stable rates for 2024, cuts in 2025
Bendigo Bank's Chief Economist David Robertson is maintaining his prediction that the Reserve Bank of Australia (RBA) will keep interest rates unchanged throughout 2024, with cuts likely to begin in ...Read more
