Citigroup expands exit from Russia to other businesses (updated)

Mar. 14, 2022 10:15 AM ETCitigroup Inc. (C)JPM, GS, DBBy: Liz Kiesche, SA News Editor6 Comments

Volgograd. Russia - November 18, 2017. The building of the City Bank on Lenin Avenue

Gaika102/iStock Editorial via Getty Images

Citigroup (C +1.2%) is expanding the scope of its exit from Russia beyond its consumer business to encompass other lines of business and to continue reducing its remaining operations and exposure, the bank said in a blog post.

In April 2021, the company had announced a plan for its consumer banking business to exit 13 markets, including Russia, to focus on four international wealth centers.

The move comes as other big banks, including Deutsche Bank (NYSE:DB), JPMorgan Chase (NYSE:JPM) and Goldman Sachs (NYSE:GS), pull out of Russia over the country's invasion of Ukraine.

"Due to the nature of banking and financial services operations, this decision will take time to execute," said Edward Skyler Citi (NYSE:C) EVP of Global Public Affairs said in the post. "We have also decided to stop soliciting any new business or clients."

The company will continue to manage its regulatory commitments and obligations to depositors, "as well as support all of our employees during this very difficult time."

Wells Fargo analyst Mike Mayo has lowered his price target and 2022 EPS estimates for Citi (C), due mostly to expected $1.5B of charges related to its Russian exposure. He trimmed the price target to $70 from $80 and expects Q1 EPS of $1.10 vs. $1.60 previously and full-year 2022 EPS of $5.40 vs. prior estimate of $6.00. He also reduced his estimate for 2023 EPS to $7.40 from $7.60. (Added at 11:16 AM ET.)

Last week, Bloomberg reported that Citi's (C) efforts to sell its consumer banking business in Russia has stalled in the wake of Russia's military actions in Ukraine.

Earlier this month, the bank was reportedly expecting to write down $100M on Russian FICC exposure. Soon after the invasion, Citi (C) disclosed total exposure of $5.4B in Russia.

This was corrected on 03/14/2022 at 11:17 AM. Changes headline and first paragraph to say it's exiting other business lines, not all businesses

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