Can Citigroup Stock Rebound?
T = Trends for a Stock’s Movement
Citigroup is a global diversified financial services holding company providing consumers, corporations, governments, and institutions with a broad range of financial products and services. It operates in two segments: Citicorp and Citi Holdings. The company’s products and services are: consumer banking and credit, corporate and investment banking, securities brokerage, wealth management, and transaction services to consumers, corporations, governments, and institutions worldwide.
Citigroup is preparing to trim branches in South Korea outside big urban areas this year to concentrate on more affluent customers, its chief financial officer said. Citigroup will disclose costs tied to the strategy later this year, CFO John Gerspach said yesterday during a conference call with analysts. The New York-based lender has been revising its Korea plans for 18 months, with early efforts focused on changing the mix of its loans, he said.
Chief Executive Officer Michael Corbat has scaled back consumer operations in some nations and targeted wealthier clients in the largest global cities to improve returns. Korea’s slowing growth and government efforts to curb household debt led to writedowns for at least one competitor, and Citigroup has said operations there will be a drag on Asian revenues in 2014. “It’s inevitable that banks in Korea will trim branches amid stalling profit,” said Michael Na, a Seoul-based analyst at Nomura Holdings Inc. Without strong revenue growth, “lenders can only seek cost efficiency by doing things like closing outlets and shifting toward micro branches and smart banking.”