Citigroup to sell, scale back consumer operations in Romania.

By bne IntelliNews December 6, 2012
Citigroup plans to sell or significantly scale back consumer operations in Romania as part of a larger restructuring programme aimed at cutting expenses and improving efficiency. As a result of the repositioning actions, Citi expects to either sell or significantly scale back consumer operations in Pakistan, Paraguay, Romania, Turkey and Uruguay, the US bank said in a statement on its website. Citigroup plans to cut 11,000 jobs worldwide, or about 4% of its workforce, hoping to bring at least USD 1.1bn in annual savings as of 2014. The cost-cutting and restructuring efforts will also result in a charge of about USD 1bn in the fourth quarter and in an annual loss of revenue of less than USD 300mn. In Romania, Citigroup will focus on its corporate and commercial banking businesses, the local unit of the bank said in a statement. While we have a strong and fast growing portfolio in the country, in the current economic environment we will not achieve the scale and profitability the company needs, fast enough. Its more feasible to reinvest our efforts in our corporate and commercial banking where the bank can grow in Romania, the statement read. Citigroup, active in Romania since 1996, provides financial products and services to local and international companies, small and middle enterprises, the public sector, non-profit organizations and individuals.

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