Citigroup has unveiled plans to wind down its consumer banking operations in China, putting around 1,200 jobs at risk.
The New York-based lender will explore options for staff willing to continue serving in China or its worldwide network.
The bank does not expect the cost of the withdrawal to be material and will pursue sale of portfolios within the business as part of the wind down.
However, it will retain its wealth management and institutional businesses in China.
Citi Legacy Franchises CEO Titi Cole said: “While we explored multiple strategic options for our China consumer business over the past several months, we believe that this path makes the most sense and we are focused on a seamless transition for our clients, partners and colleagues.”
The China exit will impact loans and cards, deposits, mortgages, investments, as well as insurance offerings.
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Citi established its presence in the country in 1902.
The bank said that it will honour its obligations to staff, customers and partners, and work with stakeholders to minimise inconvenience for clients.
This withdrawal is part of the lender’s widen plan to pull out of retail banking operations in 14 markets across Asia, Europe, Middle East and Africa and Mexico.
The US bank had unveiled plans to wind down its Russian consumer and commercial banking operations in August this year.
Last month, it completed the sale of its Malaysia and Thailand retail banking business to UOB Group.
This is part of a broader deal, which also includes the sale of the American bank’s Vietnam and Indonesia consumer banking operations.
In September 2022, Citi announced plans to shutter its UK retail business to focus on wealthy customers.