Citigroup Inc. (NYSE: C) is looking to improve its retail banking division in six markets, according to the Associated Press on Thursday.
Best Damn Penny Stocks, a leading financial publication, is pleased to alert investors of stocks on the move. Sign Up for our Free Stock Newsletter
Citi, one of the largest recipients of government aid, is focused on improving efficiency and customer service, such as extending branch hours, in the six markets, a source said to AP. The person requested anonymity because details of the plan have not been made public.
The six areas of focus include cities where the company already has a strong foothold: New York, Washington, Miami, Chicago, San Francisco and Los Angeles.
A report in The Wall Street Journal Thursday said Citi could "abandon or scale back" in areas where it has a smaller presence, such as Boston, Philadelphia and Texas. Citi is looking to sell its 120 branches in Texas, according to the Journal report.
Citigroup has been focused on its retail banking division, but was affected harshly by the credit crisis. Citi tried unsuccessfully to acquire Wachovia Corp. in an attempt to expand its retail banking footprint and grow its deposit base.
However, Wells Fargo & Co. (NYSE: WFC) beat out Citigroup to acquire Wachovia, while JPMorgan Chase & Co. (NYSE: JPM) added Washington Mutual's retail operations after WaMu failed.
It now appears Citi will focus on core markets and banking products as its main retail strategy instead of growing through geographic expansion.
The new strategy comes after Citi has received strong financial support from the U.S. government and large foreign investors, such as sovereign wealth funds, to provide it with enough reserves to protect against future losses.
Citi has been among the hardest hit banks by the recession and mounting loan defaults. It has received $45 billion in government bailout money and guarantees to protect it against losses on more than $300 billion in risky investments.
The government recently exchanged a portion of the bailout money for a 34 percent stake in the bank.
Shares for Citi stock dropped 9 cents to $4.61 in early morning trading.
Sign up for the free Best Damn Penny Stocks newsletter. To subscribe, enter your e-mail address into the frame at the bottom of this press release or visit our website
About Best Damn Penny Stocks
Best Damn Penny Stocks is a leading stock web site that allows investors and interested parties to research stocks that are on the move. We also track small cap companies that are on the brink of a financial breakout. To feature a company on our web site please contact us at the email listed below.
Please click here to read the full disclaimer
