Citigroup earning little in profits from Japan retail ops

|About: Citigroup Inc. (C)|By:, SA News Editor

Citibank Japan had net income of $12.9M last year - that's less than the total compensation of CEO Michael Corbat, and it helps explain why C has reportedly put the unit on the block.

“It is very difficult to make money from lending in Japan unless you’re in higher-margin consumer lending or if you’ve got a very large scale of operations like the megabanks have,” says analyst David Marshall. “In an environment in which interest rates are very low and investors are still somewhat risk adverse despite economics, it is hard to make money.”

Among the possible buyers are Shinsei Bank and Mitsubishi UJF (NYSE:MTU), according to the Nikkei.

Previously: WSJ: Citi considering sale of retail ops in Japan