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[이데일리 이진철 기자] Citigroup is considering restructuring its retail banking business in the Korean market, Thailand, the Philippines, and Australia. Accordingly, it is noteworthy whether Citigroup will withdraw from the banking business after 54 years of entering the Korean market.
Bloomberg cited well-known sources on the 19th (local time), and Jane Fraser, CEO of Citigroup, who took office last year, is pursuing business restructuring, and as part of that, retail banking in Asia-Pacific regions such as Korea, Thailand, the Philippines and Australia. He said he is putting weight on the plan to sell the company.
Regarding this report, Citigroup said, “As CEO Jane Fraser said in January, we have undertaken a sober and thorough strategy review, including the combination and mutual compatibility of each business.” “Many different alternatives will be considered, and for a long time I will make a decision through consideration.”
“We are looking at Citi’s strategic position from a’clinical’ perspective, evaluating which companies can take the lead in the world of digitalization,” said Fraser in a conference call last month. “The value of simplifying the company I believe there is.”
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Fraser CEO is known as a restructuring expert. In 2015, CEO Fraser oversaw Central and South America and sold retail banking and credit card businesses in Brazil, Argentina, and Colombia.
As Korea is included in the Citigroup’s restructuring country, the Citibank of Korea is also in trouble. Citigroup has entered the Korean market since 1967. In 2004, it acquired Hanmi Bank and became the current Citibank Korea. If Citigroup decides to withdraw from the Korean retail banking market, the sale of Citibank Korea could be promoted. An official at Citibank Korea said on the 21st, “There has been no information yet to be delivered about the Korean business other than the official position of the group.”
Citibank Korea has already focused on WM (wealth management) rather than retail finance. The branch has also been significantly reduced. At the end of 2016, Citibank Korea had 133 branches (branches + branches). Currently, it has shrunk to 39. In the case of the same foreign bank, SC First Bank, there are 212 (as of the end of June last year), which is a big difference.
Citibank Korea’s performance last year was poor. Until the third quarter of last year, the cumulative net profit recorded 161.1 billion won, a 38% decrease from the same period last year.
Meanwhile, in 2017, three foreign banks, including American Goldman Sachs, British RBS, and Spanish BBVA, closed their Korean branches. Subsequently, the withdrawal of foreign banks in the Korean market was followed by the closure of branches of Swiss bank UBS in 2018, Macquarie Bank of Australia and Overseas Bank of India in 2019.
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