Citigroup sells its Australian consumer business to NAB

Karthik Subramanian

Citigroup has announced that it has sold its Australian consumer banking business to National Australia Bank for a deal worth $882 million as it continues its policy of getting rid of underperforming business units around Asia and parts of Europe.

Citigroup retains the wealth management business in Australia and has sold only its consumer banking business to NAB which means that loans worth A$12.2 billion and deposits worth A$9 billion would be transferred to the NAB and the 800 employees of Citigroup that are working currently would also be transferred to NAB.

“This is a positive outcome for our clients, our colleagues, and Citi. As this transaction shows, we are moving forward with urgency as we refresh our strategy and execute the decisions we have already made as part of that effort,” said Fraser, the new CEO of Citigroup. “We are focusing our resources on businesses where we have the scale and competitive advantages to deliver growth and improved returns over time,” she added.

The sale follows the overall decision of Citigroup to focus on regions and businesses that provide the most returns for the company and as a result of this decision, the bank had decided to sell its assets in 13 locations across Asia and parts of Europe to not only generate funds but also give up on low impact regions and focus on regions where it has some very good business.

For NAB, it is indeed a boost as it gets to grow its user base in personal banking and consumer lending in a large manner in one big swipe. The deal does make sense for NAB as it looks to grow all around Australia and it had beat off some big competition for this deal. Though several new players are entering into the banking and financial services business, especially on the BNPL side, it is expected that the legacy businesses would continue to provide stable returns in the future, as well as the bank, continues to work on new products and features to fend off competition in this sector for the long term. Likely, the bank would immediately start focussing on the BNPL business as that sector has really taken off over the last few months and seeing increasing competition with new entrants including giants like Paypal

Read this next

Market News

Stock Market Analysis: Is NVDA Losing Its Leadership?

Since the beginning of the week, the S&P 500 Index (US500) has seen a modest increase of about 0.58%, whereas NVDA’s share price has experienced a decline of approximately 3.8%. This recent divergence raises concerns among Nvidia stock investors — could it signify a loss of NVDA’s market leadership?

Industry News

ESG: Australian regulator wins first greenwashing court case against Vanguard

Vanguard admitted that a notable portion of the securities within both the Index and the Fund did not undergo the promised ESG scrutiny.

Fintech, Uncategorized

BitMEX integrates HALO from Solidus Labs for cross-market surveillance

““The recent approval of the Spot Bitcoin ETF has piqued the market’s interest. As a result of price volatility, the trading volumes for crypto derivatives have gone up substantially. HALO, with its advanced technology and crypto-native detection architecture, will enable BitMEX to smoothly and safely scale trade surveillance across its increased trading volumes and provide the necessary safeguards for new product launches.”

Reviews

IUX Broker Review

IUX, recently rebranded from IUX Markets, stands as a multi-asset Forex broker recognized for its regulatory compliance across various jurisdictions.

Industry News

Horizon Software rebrands to Horizon Trading Solutions

“Horizon Trading Solutions has seen accelerated global growth over the past year to meet the rising demand for our trading solutions and built-for-purpose technology offering. The choice to rebrand represents a key part of this development, while maintaining our heritage and history in the industry.”

Market News

USDJPY has surged to levels last witnessed in 2022. Should we consider opening a short position?

The recent resurgence of the US dollar has propelled USD/JPY to new heights, touching levels not seen since 2022. This surge comes against the backdrop of stable short-term yields and ongoing economic data that fails to signal a significant slowdown, prompting questions about the extent of current monetary easing measures.

Digital Assets

DED Trends on Twitter After Memecoin Snapshot Announcement

Polkadot-backed community coin #DED, made it to the trending charts on X, demonstrating community’s engagement and interest behind the memecoin. 

Digital Assets

BlockDAG Presale Nears $10 Million Amid Toncoin’s Momentum, Green Bitcoin’s Presale, and the Rise of Other Top Cryptos

This article will examine three top trending topics: Toncoin’s potential, Green Bitcoin’s innovative presale, and BlockDAG’s sustainable mining approach. These cryptocurrencies take centre stage for their uniqueness and innovation.

Digital Assets

Coinbase scores minor victory vs SEC, but lawsuit to proceed

A federal judge in Manhattan, U.S. District Judge Katherine Polk Failla, ruled on Wednesday that the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Coinbase can largely proceed.

<