Citigroup flags up to $1.5 billion charge from South Korea retail banking exit

© Reuters. FILE PHOTO: The logo for Citibank is seen on the trading floor at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., August 3, 2021. REUTERS/Andrew Kelly/File Photo

(Reuters) -Citigroup Inc said on Monday it expects to take a charge of nearly $1.2 billion to $1.5 billion related to the closure of its consumer banking business in South Korea.

The bank had said in April it would exit consumer businesses in 13 markets in Asia and EMEA (Europe, Middle East and Africa), where it does not have the scale necessary to compete.

The winding down is part of Chief Executive Officer Jane Fraser’s plan to streamline operations and boost the bank’s profitability.

The charges will be incurred over time through the remainder of 2021 and 2022, the bank said in a filing with the U.S. Securities and Exchange Commission.