Citigroup’s (C) global consumer banking unit, or GCB, provides traditional banking services including commercial banking and cards to retail customers. It offers a full range of consumer banking products and services including checking and savings accounts, loans, wealth management advice, and small business services.
Markets in focus
GCB provides services through four regional consumer banking, or RCB, businesses based in these geographical regions:
- North America
- EMEA, or Europe, Middle East, and Africa
- Latin America
North America RCB branches are largely concentrated in the metropolitan areas of New York, Los Angeles, San Francisco, Chicago, Miami, Washington DC, Boston, Philadelphia, Dallas, Houston, San Antonio, and Austin.
The countries in which EMEA RCB has the largest presence are Poland, Russia, and the United Arab Emirates. Mexico and Brazil are the group’s top countries in Latin America. Asian countries with significant presence include Korea, Australia, Singapore, Hong Kong, Taiwan, Japan, India, Malaysia, Indonesia, Thailand, and the Philippines.
Citigroup’s peers JP Morgan (JPM), Wells Fargo (WFC), and Bank of America (BAC) have much smaller global consumer banking operations. All of these banks are part of the Financial Select Sector SPDR ETF (XLF), which has 35% of its portfolio invested in the banking sector.
The graph above shows Citigroup net income and revenue by segment. GCB generates 53% of the group’s revenue but contributes only 43% to the group’s income. The comparatively lower margin probably explains the group’s overall strategy to target the high-margin institutional segment and emerging affluent and affluent consumers in large urban centers. Citigroup plans to optimize its branch network and further concentrate its presence in big metropolitan areas.