New York Citi today announced that, as part of its continued efforts to reduce its operations and exposure in Russia, it will wind down its consumer banking and local commercial banking operations in the country. As part of the wind-down, Citi will also continue to actively pursue sales of certain Russian consumer banking portfolios.
Citi announced its plan to exit Russia consumer banking in April 2021 as part of its global strategic refresh to exit consumer franchises in 14 markets in Asia, Europe, Middle East and Africa, and Mexico. In March 2022, Citi expanded the scope of its planned exit in Russia to include local commercial banking.
Actions to facilitate the wind-down of consumer and local commercial banking will commence this quarter. The wind-down is expected to affect approximately 2,300 employees and 15 branches. Consumer products and channels affected by the exit include deposits, investments, loans and cards. The wind-down will be carried out in compliance with applicable regulations and Citi will honor its obligations to clients, employees and partners.
As previously noted, Citi continues to support its multinational institutional clients, particularly those which are undergoing the complex task of winding down their operations in Russia.
Titi Cole, Citi's CEO of Legacy Franchises, said: “We have explored multiple strategic options to sell these businesses over the past several months. It’s clear that the wind-down path makes the most sense given the many complicating factors in the environment. We are focused on supporting our impacted colleagues, clients and partners during this period of transition.”
David Livingstone, Citi’s CEO of Europe, Middle East and Africa, said, “Today’s decision is part of our continuing efforts to reduce our activities in Russia. It is aligned with other actions, including limiting our service offering, reducing our exposures, and not soliciting any new business or clients.”
At the end of the second quarter 2022, Citi’s remaining exposure to Russia stood at $8.4 billion, down from $9.8 billion at 2021 year-end, of which approximately $1 billion is related to the consumer and local commercial banking businesses in Russia. In connection with the wind-down plan announced today, Citi expects to incur approximately $170 million in costs, primarily over the next 18 months, largely driven by restructuring, vendor termination fees and other related charges.
A Form 8-K Current Report has been filed in connection with the wind-down.
Citi is a preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in its home market of the United States Citi does business in more than 160 countries and jurisdictions, providing corporations, governments, investors, institutions and individuals with a broad range of financial products and services.
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Jeffrey French, +44 20 7500 8304
Danielle Romero Apsilos, +1 212 816 2264
Jennifer Landis, +1 212 559 2718
Certain statements in this release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. These statements are not guarantees of future results or occurrences. Actual results and capital and other financial condition may differ materially from those included in these statements due to a variety of factors, including, among others, Citi’s ability to successfully wind down its consumer banking and local commercial banking operations in Russia, including within the expected timeframe, whether resulting from or related to Russia’s war in Ukraine or otherwise, including imposition of additional sanctions and export controls, as well as the broader impacts to financial markets and the macroeconomic and geopolitical environments; governmental or regulatory requirements, approvals and actions; Citi’s incurrence of unexpected losses, charges or other costs in connection with the wind down; and the precautionary statements included in this release. These factors also consist of those contained in Citi's filings with the U.S. Securities and Exchange Commission, including without limitation the "Risk Factors" section of Citi's Annual Report on Form 10-K for the year ended December 31, 2021, and Citi’s Current Report on Form 8-K dated May 10, 2022 (as amended by a Current Report on Form 8-K/A dated May 10, 2022). Any forward-looking statements made by or on behalf of Citi speak only as to the date they are made, and Citi does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.