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Citi to sell its Australian consumer business

The group, which targets high net worth individuals, today announced it would ‘continue an exit’ from its consumer banking business in 13 markets, including Australia, following a ‘strategic review’.

Instead, the group will focus its investments and resources on businesses that can “generate stronger growth, deliver scale and improve long-term returns”.

In Australia, the sale of the consumer business will allow Citi to focus its investments and resources on its institutional businesses, which include investment banking, capital markets and advisory, securities markets and services, commercial banking and treasury and trade solutions.

The sale of the consumer business will include mortgages, credit cards, loans, retail banking and wealth management for wealthy individuals.

Under the new strategy, the group will instead have a new consumer banking strategy for Asia and Europe, the Middle East and Africa, which will focus on four wealth centers: Singapore, Hong Kong , London and the United Arab Emirates.

The group will offer its existing customers a full range of products from these four hubs.

Citi Australia CEO Marc Luet said; “Citi’s consumer bank in Australia is an attractive and profitable business, employing highly skilled and dedicated team members. Citi is committed to ensuring the best possible outcome for our employees and our customers.

Mr Luet confirmed that Citi has begun a process of selling its Australian consumer business and has received interest from several potential buyers. Any sale would be subject to regulatory approval.

“During the sale process, there will be no change in how Citi serves its consumer banking customers. Consumer operations will continue to operate as they do today,” Mr. Luet said.

More soon.