Citigroup Inc. reported a sharply higher profit in the first quarter on Thursday and said it is shutting down most of its consumer banking in Asia, Europe and the Middle East.
The bank posted a profit of $ 7.9 billion, or $ 3.62 a share, well above the forecast of $ 2.60 a share by analysts polled by FactSet. A year earlier, Citigroup reported quarterly earnings of approximately $ 2.5 billion, or $ 1.05 per share.
Citigroup also said it would discontinue its consumer operations in 13 countries, primarily in Asia, to focus on wealth management and other businesses.
Jane Fraser, who took over as CEO last month, said in a statement that those consumer banks were excellent companies, but “we don’t have the scale we need to compete.” She said Citigroup would continue to invest in asset management and the companies that partner with corporate clients in Asia.
Citigroup is a giant on Wall Street, but relatively small in US consumer banking, a combination that has been criticized by some analysts and investors. Ms. Fraser said in January that the bank would restructure the companies that manage money for high net worth clients, with the goal of reaching and retaining clients sooner as they get richer. The bank said on Thursday that it will operate consumer banking in four “prosperity centers” where it expects strong growth for its asset management business: Singapore, Hong Kong, the United Arab Emirates and London.