CITIGROUP TO EXIT ASIA and EMEA!
As part strategy, Citi Group would exit consumer businesses in 13 Asia and EMEA countries, including the major markets of Australia, China and India. As per sources, Citi group capital, investment dollars and other resources are better deployed against higher returning opportunities in wealth management and institutional businesses in Asia.
The Institutional Clients Group, which includes capital markets, commercial banking and private banking, will continue to serve clients and operate "wealth centres" in Singapore and Hong Kong, as well as London and the United Arab Emirates, the bank said.
Citigroup Inc. (C.N) trounced first-quarter profit expectations thanks to a rebound in the broader economy and a jump in investment banking activity, and said it would exit some overseas businesses as new chief executive Jane Fraser starts to make her mark on the bank. The country's third-largest lender reported $7.94 billion in profit; triple $2.54 billion a year earlier, as it released funds set aside to cover pandemic loan losses and cashed in on a boom in listed shell company deals which has boosted underwriting income across Wall Street. Net interest revenue, the difference between interest the bank earns and what it pays on deposits and borrowings, was $10.17 billion, down 12% from a year earlier. Total revenue fell 7% to $19.3 billion on low interest rates and a 10% decline in loans, largely due to lower consumer credit card loan balances.
Also in line with Wall Street peers, Citigroup's investment banking revenue surged 46% on stronger equity underwriting fees. The bank has been a leader in raising money for the so-called blank-check firms or special purpose acquisition company frenzy, which has seen $100 billion worth of U.S. deals this year. Markets and securities revenue for Citigroup rose 2%, compared with an exceptionally strong quarter a year earlier. Expenses rose 4%, in line with the company's projections, on increased spending to fix its risk controls and improve its operations.
