The follows Citigroup’s decision to exit consumer banking operations in 13 markets across Asia, Europe and the Middle East, reported in the first quarter of 2022, in order to enhance competitiveness with shift in focus to wealth management in Asia. As a result, the continued trimming of its consumer banking business may position it as corporate bank, he added. It accounted for 0.13% of the Citigroup’s total revenue in FY2021.Ĭonsequently, Citigroup plans to further enhance its competitiveness and profit margin by focussing on higher-returning institutional businesses where it has competitive advantages.

GlobalData cited Citibank UK reported a revenue of $101.9 million for the year ended 31 December 2021, a decline of 9.2% Year-on-Year. He added foreign banks have traditionally struggled to crack the overseas retail banking market despite bringing in advanced technology, and enjoying strong brand equity, primarily because of different regulatory environments and domestic demographic trends, and in the UK, it is more complex with the success of challenger banks. “Although Citi says that shutting down its sole UK retail branch will have no impact on its overall finance, the move complements its 2021 decision to focus on global wealth centers as well as payments and higher-returning institutional businesses, where the bank has competitive advantages. Earlier in 2022, the American banking major announced its intent to wind down its consumer, small business and middle-market banking operations in Mexico, which operates through Citibanamex.

GlobalData Analyst Murthy Grandhi said: “The move to close the UK retail banking operations forms part of Citigroup’s strategy to focus more on its high return wealth management space.

The decision taken by Citigroup to exit the UK retail banking sector is based on the banks competitive advantages.

Global consumer banking analyst citi