Statement From Citi CFO Mark Mason on Wind-Down of Korea Consumer Bank

Rhea-AI Summary

Citi announced the wind-down of its Korea Consumer Bank, part of a strategic exit from 13 consumer markets in Asia and EMEA. CFO Mark Mason stated that the economics of this decision are better than continuing operations, highlighting potential savings from reduced future operating costs and a release of approximately $2 billion in tangible common equity over time. The bank aims to concentrate on four wealth centers: Hong Kong, Singapore, London, and the UAE, while continuing to invest in institutional franchises.

Positive

• Wind-down of Korea Consumer Bank expected to release approximately $2 billion in tangible common equity.
• Focus on wealth centers (Hong Kong, Singapore, London, UAE) may enhance operational efficiency.

Negative

• Winding down may indicate challenges in the Korea market, impacting future growth potential.
• Continued exit from consumer markets could lead to reduced overall market presence.

NEW YORK--(BUSINESS WIRE)-- Citi Chief Financial Officer Mark Mason released the following statement regarding the wind-down of the Korea Consumer Bank, which is part of Citi’s strategic plan to exit 13 consumer markets in Asia and EMEA to refocus its presence on four wealth centers: Hong Kong, Singapore, London and the UAE. Citi will continue to invest in and grow its institutional franchises in the two regions.

“We continue to have good conversations with potential buyers of our consumer businesses across the two regions. In terms of Korea, however, the economics of winding down the consumer business are much more attractive than continuing to run the business -- even including the cost of the voluntary retirement program -- given the reduced future operating costs and the release of roughly $2 billion of allocated tangible common equity over time.”

Certain statements in this release are “forward-looking statements” within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. These statements are not guarantees of future results or occurrences. Actual results and capital and other financial condition may differ materially from those included in these statements due to a variety of factors. These factors include, among others, the successful wind down and closure of the Korea consumer banking business, including within the expected timeframe, macroeconomic and local market conditions, consumer preferences, and the precautionary statements included in this release. These factors also consist of those contained in Citi’s filings with the SEC, including without limitation the “Risk Factors” section of Citi’s 2020 Form 10-K. Any forward-looking statements made by or on behalf of Citi speak only as to the date they are made, and Citi does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.

Citigroup, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citigroup provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.

Additional information may be found at www.citigroup.com | Twitter: @Citi | YouTube: www.youtube.com/citi | Blog: http://blog.citigroup.com | Facebook: www.facebook.com/citi | LinkedIn: www.linkedin.com/company/citi

View source version on businesswire.com: https://www.businesswire.com/news/home/20211108005641/en/

Investors: Jennifer Landis 212 793 2014

Media: Danielle Romero Apsilos 212 816 2264

Source: Citigroup Inc.

FAQ

What is Citi's recent announcement regarding the Korea Consumer Bank?

Citi announced the wind-down of its Korea Consumer Bank as part of a strategic exit from 13 consumer markets.

How much capital is expected to be released from the wind-down of the Korea Consumer Bank?

The wind-down is expected to release approximately $2 billion in tangible common equity over time.

What are Citi's new focus areas following the exit from consumer markets?

Citi will focus on enhancing its presence in four wealth centers: Hong Kong, Singapore, London, and the UAE.

What factors influenced Citi's decision to close its Korea Consumer Bank?

The decision was influenced by the economics of operation costs, which are deemed more favorable than continuing the business.