Citigroup may divest S. Korean subsidiary

New York-based Citigroup is considering divesting retail banking units across the Asia-Pacific region, including in South Korea.

According to the multinational banking giant, they are dispassionately and thoroughly review their strategy, including their business mix and how they fit together.

It added that options are being considered and it will take time before making any decisions.

Citibank Korea still has to receive communications from its New York headquarters about divesting, such as requests for downsizing or resignation.

Citigroup's South Korean banking subsidiary struggled with its performance last year due to the effects of the impact of the pandemic coupled with increased competition among local banks.

The five major banking groups competing with Citibank Korea, namely Shinhan, Woori, KB, Hana, NH NongHyup have been speeding up the digitalization of their services, while fintech firms began amassing more customers and seeing greater demand.

Citibank Korea posted a net profit of 161 billion won in the January-September period, down 38 percent on-year.

South Korea's five major banking groups all suffered losses in the same period, but their unprecedented gains from home-lending t cushioned the damage.

Citibank Korea has yet to announce its fourth-quarter performance.

Revenue from Citi’s consumer banking business in Asia fell 15 percent to $1.55 billion in the last three months of 2020.

Citigroup's incoming CEO Jane Fraser was behind the shocking offloading of retail banking and credit card operations in Argentina, Brazil, and Colombia after assuming the role of Citigroup’s head of Latin America in 2015.