Citi (C) Looks to Exit More Countries Under Cost-Savings Initiative
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Citigroup (NYSE: C) shares are indicated lower Thursday morning amid reports it might be looking to exit certain countries in an effort to stem overhead costs.
Last December, Citi said it would be leaving countries like Paraguay, Turkey, and Pakistan -- five in total -- as part of an initiative put in place by CEO Michael Corbat to save the bank $1.1 billion per year and trim 11,000 jobs.
Reuters noted this morning that outside of the U.S., the only three countries to account for half of consumer loans are Mexico, Australia, and South Korea. All other countries account for just a small percentage.
Divesting won't be as easy as planned; HSBC Holdings (NYSE: HBC) recently sold off about 40 businesses and assets since 2011 and other financials are looking to do the same thing.
Other countries in which Citi is looking to exit haven't been named. The bank operates in about 100 counties globally.
Shares are down about 0.4 percent early.
Last December, Citi said it would be leaving countries like Paraguay, Turkey, and Pakistan -- five in total -- as part of an initiative put in place by CEO Michael Corbat to save the bank $1.1 billion per year and trim 11,000 jobs.
Reuters noted this morning that outside of the U.S., the only three countries to account for half of consumer loans are Mexico, Australia, and South Korea. All other countries account for just a small percentage.
Divesting won't be as easy as planned; HSBC Holdings (NYSE: HBC) recently sold off about 40 businesses and assets since 2011 and other financials are looking to do the same thing.
Other countries in which Citi is looking to exit haven't been named. The bank operates in about 100 counties globally.
Shares are down about 0.4 percent early.
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