Citigroup says shutting branches in Japan
Citigroup, reeling from the subprime mortgage crisis, said on Friday it was closing down its remaining consumer lending outlets in Japan.
By Agencies |
TOKYO: Citigroup, reeling from the subprime mortgage crisis, said on Friday it was closing down its remaining consumer lending outlets in Japan.
Citigroup Inc. said it would shut all 32 branches of its lending unit, CFJ KK, in Japan and shut 540 unmanned automatic loan machines over the next 12 months.
The company said the move was part of broader efforts to refocus on strong areas.
Consumer finance used to be a cash cow for banking groups in Japan, but profits have slipped as tighter regulations are introduced to shield the public from interest rates deemed excessively high.
Citigroup has been hit hard by the subprime crisis, in which high-risk US customers were granted loans during the last housing boom but are now struggling to make their mortgage payments.
Citigroup's new chief executive, Vikram Pandit, last month said the company planned to sell some 400 billion dollars in assets to restore the company to profit.
In Japan, Citigroup in February announced it was selling its headquarters in Tokyo to rival Morgan Stanley in a deal reported to be worth 48 billion yen ($455 million).
Despite the subprime crisis, Citigroup has pressed ahead with expansion into the Japanese market, this year taking full control of brokerage house Nikko Cordial Corp. in a $4.8 billion share swap.
Citigroup Inc. said it would shut all 32 branches of its lending unit, CFJ KK, in Japan and shut 540 unmanned automatic loan machines over the next 12 months.
The company said the move was part of broader efforts to refocus on strong areas.
Consumer finance used to be a cash cow for banking groups in Japan, but profits have slipped as tighter regulations are introduced to shield the public from interest rates deemed excessively high.
Citigroup has been hit hard by the subprime crisis, in which high-risk US customers were granted loans during the last housing boom but are now struggling to make their mortgage payments.
Citigroup's new chief executive, Vikram Pandit, last month said the company planned to sell some 400 billion dollars in assets to restore the company to profit.
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In Japan, Citigroup in February announced it was selling its headquarters in Tokyo to rival Morgan Stanley in a deal reported to be worth 48 billion yen ($455 million).
Despite the subprime crisis, Citigroup has pressed ahead with expansion into the Japanese market, this year taking full control of brokerage house Nikko Cordial Corp. in a $4.8 billion share swap.
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