Citigroup to exit consumer banking in Vietnam
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America’s Citigroup will exit 13 international consumer banking markets, including Vietnam, to shift its focus to four wealth centers.
The move is part of the bank’s strategic decision to direct investments and resources to businesses with the greatest scale and growth potential, it stated, adding its main markets will include Singapore, Hong Kong, the United Arab Emirates and London.
Apart from Vietnam, 12 other markets to be affected are Australia, Bahrain, China, India, Indonesia, South Korea, Malaysia, the Philippines, Poland, Russia, Taiwan and Thailand.
“While the other 13 markets have excellent businesses, we don’t have the scale we need to compete. We believe our capital, investment dollars and other resources are better deployed against higher returning opportunities in wealth management and our institutional businesses in Asia.”
The bank has not specified when it would leave Vietnam.
Citigroup in 1994 became the first U.S. financial institution licensed to open a branch in Hanoi. It opened its second branch in Ho Chi Minh City in 1998.
Questions & Answers
Q.Why is Citigroup exiting consumer banking in Vietnam and other markets?
Why is Citigroup exiting consumer banking in Vietnam and other markets?
Citigroup is focusing on businesses with greater scale and growth potential, such as wealth management and institutional businesses. It stated that these 13 markets lack the necessary scale to compete effectively, leading to a reallocation of capital and resources.
Q.Which other countries will Citigroup exit consumer banking from, alongside Vietnam?
Which other countries will Citigroup exit consumer banking from, alongside Vietnam?
In addition to Vietnam, Citigroup will exit consumer banking in Australia, Bahrain, China, India, Indonesia, South Korea, Malaysia, the Philippines, Poland, Russia, Taiwan, and Thailand. This is part of a broader strategic shift for the bank.
Q.When did Citigroup first establish a presence in Vietnam?
When did Citigroup first establish a presence in Vietnam?
Citigroup first established a presence in Vietnam in 1994, when it became the first U.S. Financial institution to be licensed to open a branch in Hanoi. A second branch later opened in Ho Chi Minh City in 1998.
Q.Which four wealth centres will Citigroup now concentrate its consumer banking efforts on?
Which four wealth centres will Citigroup now concentrate its consumer banking efforts on?
Citigroup will now concentrate its consumer banking efforts on four main markets identified as wealth centres. These strategic locations are Singapore, Hong Kong, the United Arab Emirates, and London, where it sees higher returning opportunities.