Citigroup warns of hefty charges from South Korea consumer business closing

© Reuters. FILE PHOTO: The logo for Citibank is seen on the trading floor at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., August 3, 2021. REUTERS/Andrew Kelly/File Photo

(Reuters) -Citigroup Inc on Monday warned of significant charges related to the closing of its consumer banking business in South Korea, months after announcing its exit from 13 markets across Asia, Europe, Middle East and Africa.

The Wall Street lender’s plan is part of Chief Executive Officer Jane Fraser’s turnaround strategy to bring the bank’s profitability and share price in line with its peers.

The charges will largely comprise payouts to employees related to voluntary termination benefits, discussions for which have already started with employee unions, Citigroup (NYSE:) said, adding the charges will be spread across till the end of 2023.

The bank said it was, however, unable to estimate the charge it will take.

Besides South Korea, the bank will also divest its retail banking arms in Australia, Bahrain, China, India, Indonesia, Malaysia, the Philippines, Poland, Russia, Taiwan, Thailand and Vietnam, it said in April.

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