Citigroup warns of heavy bills from South Korean consumer business closure


Citigroup warned on Monday of significant costs associated with the closure of its retail banking business in South Korea, months after announcing its withdrawal from 13 markets in Asia, Europe, the Middle East and Africa.

Wall Street lenders’ plans are part of CEO Jane Fraser’s turnaround strategy to match banks’ profitability and stock prices with their peers.

According to Citigroup, most of this cost is paid to employees in connection with voluntary severance pay, and talks with employee unions have already begun, Citigroup said the cost will extend until the end of 2023. Added.

The bank, however, said it could not estimate the charges it would cost.

In addition to South Korea, the bank announced in April that it would also sell retail banking divisions in Australia, Bahrain, China, India, Indonesia, Malaysia, the Philippines, Poland, Russia, Taiwan, Thailand and Vietnam.

Niket Nishant

Reuters

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