Adios Managua

14 October 2014 By Rob Cox Follow @rob1cox

Execs call plans to pull back on retail in 11 countries a “transformation.” That’s hyperbole. The units account for a paltry 5 pct of Citi’s global consumer business. It’ll look smarter if the move presages a more aggressive rationalization of the bank that can’t shoot straight.

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Citigroup on Oct. 14 said it will exit its consumer businesses in 11 markets, so that it can focus on countries where it “has the greatest scale and growth potential.”

The affected businesses include the consumer franchises in Costa Rica, Czech Republic, Egypt, El Salvador, Guam, Guatemala, Hungary, Japan, Nicaragua, Panama and Peru, as well as the consumer finance business in South Korea. Citigroup’s Institutional Clients Group will continue to serve clients in these markets.

The company said active sales processes are under way for the majority of the businesses, and subject to market conditions and regulatory and other approvals should be substantially completed by the end of 2015.

“I am committed to simplifying our company and allocating our finite resources to where we can generate the best returns for our shareholders,” Chief Executive Michael Corbat said in a statement. “While we have made progress optimizing these 11 consumer markets, we believe our Global Consumer Bank will achieve stronger performance by focusing on the countries where our scale and network provide a competitive advantage.”

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