Citibank expands to Africa after closing shop elsewhere
By Jeph Ajobaju, Chief Copy Editor
Citibank is expanding to Nigeria, South Africa, Kenya, and Egypt to compete for a cut of international business profit on a continent where foreign investment is rising, particularly in fintech startups.
The news comes after the American financial service group announced exit from consumer and retail banking in 13 markets across Asia, Europe, and the Middle East.
It also comes weeks after British banking and financial services group, Standard Chartered, announced plans to close about 50 per cent Nigerian subsidiary branches to facilitate migration to digital banking to improve customer service.
Citibank’s expansion into some of the biggest economic hubs in Africa is also in line with its activities in countries like Australia where it set up a commercial banking business in 2019.
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Enhancing profitability, share price
Citigroup Chief Executive Officer for Europe Middle East and Africa (EMEA) emerging markets cluster, Ebru Pakcan, confirmed plans for the expansion in an interview with Bloomberg in Dubai.
Citibank has been reviewing operations in markets worldwide since Chief Executive Officer Jane Fraser took over in March. It has exited 13 countries but continues to offer products to larger clients and institutions in these markets.
The Citibank Group announced in January its exit from consumer, small business and middle market banking units in its Mexican subsidiary by June, ending 20-year retail presence in the country that was the last of its overseas consumer business.
Decision to sell its Mexican asset is part of Fraser’s strategy to bring profitability and share price performance in line with the group’s peers.
Citibank intends to focus on its rapidly expanding wealth management arm and hopes to deepen footprint in Africa by leveraging on relationships built elsewhere.
Focus on existing clients
“We will be in the markets with a caveat that we are not going to go to very low or small enterprises but rather focusing on making the Citi network available to existing clients with multiple countries’ presence,” Pakcan said.
“We are working on the strategy to develop around wealth in the UAE. We are talking about building space and planning around where to seat the new hires.”
