The Korea Times close
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
Business
  • Tech
  • Bio
  • Companies
Finance
  • Companies
  • Economy
  • Markets
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
Entertainment
& Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
Sports
World
  • SCMP
  • Asia
Video
  • Culture
  • People
  • News
Photos
  • Photo News
  • Darkroom
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
Finance
  • Companies
  • Economy
  • Markets
Wed, May 25, 2022 | 14:49
Companies
Weak earnings making Citibank Korea less attractive to potential buyers
Posted : 2021-08-16 09:43
Updated : 2021-08-16 17:17
Print Preview
Font Size Up
Font Size Down
Citibank Korea's headquarters in Seoul / Courtesy of Citibank Korea
Citibank Korea's headquarters in Seoul / Courtesy of Citibank Korea
By Park Jae-hyuk

Citigroup is facing another setback in its ongoing attempt to sell its retail banking unit here: Citibank Korea's weak earnings during the first half of the year.

In contrast to domestic commercial banks that enjoyed rapid rises in their first-half net incomes, Citibank Korea's first-half net profit dropped 11 percent year-on-year to 80.1 billion won ($69 million), while its revenue also fell 11.6 percent to 276.3 billion won during the same period.

Citibank Korea CEO Yoo Myung-soon, who told the bank's employees a month earlier that both consumer and corporate financing sectors were expected to show satisfactory results, attributed the poor performance to the challenging business environment prolonged by the COVID-19 pandemic.

Although the CEO emphasized that the bank has continued to enhance its overall customer experience in consumer banking through improvements in its mobile application and marketing strategies, the earnings decline seems to make Citibank Korea's retail banking unit less attractive to potential buyers.

Market observers expect Citibank Korea to be unable to avoid reducing its workforce before the sale, given that the potential buyers have remained reluctant to guarantee the job security of all employees, due to concerns over labor costs.

According to industry representatives, Citibank Korea's employees, whose average age is 46.5, were paid 120 million won a year on average, while workers of local commercial banks were paid less than 100 million won.

At this moment, the management has maintained the stance that its exit strategy will prioritize supporting its customers and employees, in an apparent attempt to convince Citibank Korea's unionized workers, who have protested fiercely against the U.S. headquarters' plan.

However, the union said late last month that its members can accept voluntary retirement. The amount of compensation given to retirees from the company has therefore been regarded as the key to Citigroup's successful exit.

Citibank Korea plans to announce the specifics of its exit strategy sometime this month, after having negotiations with the union over the issue.

Meanwhile, Citigroup's consumer banking unit in Australia was sold Monday to the National Australia Bank (NAB) for about $882.24 million. The Australian buyer agreed to the transfer of 800 Citigroup employees to the NAB.


Emailpjh@koreatimes.co.kr Article ListMore articles by this reporter
 
  • 75th Cannes Film Festival
  • Attention needed to end modern-day slavery
  • Ex-Gyeryong mayor found dead after losing nomination in local elections
  • Labor union opposes resumption of late-night subway operations
  • [INTERVIEW] How brewery waste turned into pizza dough, energy bars at RE:harvest
  • Premier League Golden Boot winner Son Heung-min receives hero's welcome home
  • Samsung to invest 450 trillion to cement lead in chip, bio sectors
  • Mother charged with killing disabled daughter
  • Gov't to ease tax burden that increased during previous administration
  • [ANALYSIS] Internet-only K bank pressed to delay IPO plan
  • 'GOT7 has not disbanded' 'GOT7 has not disbanded'
  • Hollywood blockbuster sequels poised to hit theaters, streaming platforms Hollywood blockbuster sequels poised to hit theaters, streaming platforms
  • Girl group NiziU to begin 1st Japanese tour Girl group NiziU to begin 1st Japanese tour
  • Actor's short film 'Dark Yellow' nominated for Asia competition at Japan's film festival Actor's short film 'Dark Yellow' nominated for Asia competition at Japan's film festival
  • 'The Witch: Part 2' director still has more story to tell 'The Witch: Part 2' director still has more story to tell
DARKROOM
  • 75th Cannes Film Festival

    75th Cannes Film Festival

  • People in North Korea trapped in famine and pandemic

    People in North Korea trapped in famine and pandemic

  • 2022 Pulitzer Prize: Bearing witness to history

    2022 Pulitzer Prize: Bearing witness to history

  • Worsening drought puts millions at risk

    Worsening drought puts millions at risk

  • Our children deserve the best

    Our children deserve the best

The Korea Times
CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Location
  • Media Kit
  • Contact Us
  • Products & Service
  • Subscribe
  • E-paper
  • Mobile Service
  • RSS Service
  • Content Sales
  • Policy
  • Privacy Statement
  • Terms of Service
  • 고충처리인
  • Youth Protection Policy
  • Code of Ethics
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group