Citigroup trims global consumer banking profile as earnings jump

NEW YORK, United States - Citigroup announced on Thursday it will exit 13 international consumer banking markets as it joined other large banks in reporting blowout earnings amid a strengthening US economy.

As with other large banks, Citigroup's profits were bolstered by a good performance in its investment banking and trading businesses, as well as the release of $3.9 billion in reserves set aside for bad loans.

"It's been a better-than-expected start to the year, and we are optimistic about the macro environment," said Citi Chief Executive Jane Fraser.

Citigroup reported first-quarter profits of $7.9 billion, more than three times the level in the year-ago period. Revenues fell seven percent to $19.3 billion. 

With coronavirus vaccines and significant US fiscal stimulus spending boosting the outlook, major banks no longer expect huge loan defaults due to Covid-19.

But Citigroup unveiled a significant downsizing of its global consumer banking footprint as it shifted its focus to wealth management and away from retail banking in places where it is small.

Citigroup will depart China, India and 11 other retail markets, where "we don't have the scale we need to compete," Fraser said.

Fraser, who moved into the CEO role in March, described the pivot as part of an effort to "double down" on wealth management, where the growth opportunities are better.

Citigroup will focus its global consumer banking business on four markets: Singapore, Hong Kong, Britain and the United Arab Emirates. 

Most of the markets being exited are in Asia, where Citigroup's global consumer banking business at the end of 2020 had $6.5 billion in revenues and $123.9 billion in deposits.

The bank has about 200 branches in these markets, but they will not be immediately affected by the announcement. The number of branches is expected to dwindle as Citigroup divests the properties, according to a company official. 

The other 11 markets affected by the decision are: Australia, Bahrain, Indonesia, South Korea, Malaysia, the Philippines, Poland, Russia, Taiwan, Thailand and Vietnam.

On Thursday, Bank of America reported its first-quarter profits more than doubled to $8.1 billion, while revenues held flat at $22.8 billion.

BofA's results were also bolstered by a reserve release of $2.7 billion, as well as a strong performance in investment banking and trading.

Shares of Citigroup fell 0.9 percent to $72.24, while Bank of America dropped 3.4 percent to $38.51 in afternoon trading.

Agence France-Press

Buying your first home? Here are 7 things to consider

MANILA - We all dream of owning a home someday. And why not? A home means stability and permanence, where one’s family can grow roots, seek refuge and build a life together. At the same time, it is always a valuable asset and an investment in itself.

Have you thought about buying your own home but don’t know where to start? Have you ever wondered if you can even afford it? If you can, do you have an idea of what your money can buy? Whether you’re thinking of getting a tiny studio unit or a sprawling house with a large yard, you will need to put considerable thought into your plan.


Owning a home calls for responsibility and commitment. It calls for a lot of thought and a careful evaluation of your lifestyle, finances, as well as your present and future needs. Here are 7 factors to consider in deciding if you are ready to own your first home.

1. Are you ready for this investment?

Do you have enough funds to buy your dream home? Do you have a regular source of income? Are you getting a big inheritance soon? A house is usually a considerable investment, and you need to have enough money to be able to purchase one. If you plan to take out a loan for your home, you still need to have the financial capacity in order to qualify for financing schemes offered by both banks and developers.

2. Consider your present and future plans.

A house is not exactly easy to dispose, considering the sums involved as well as the paperwork and taxes that it entails. This is why you have to know your reasons for buying a house, and think how this fits with your life plans. For instance, are you planning to move out of the country anytime soon? If so, having a house makes you less mobile. Are you planning to have children soon? If so, you might want to think about getting something bigger than a tiny studio in order to accommodate your growing brood.

3. Location, location, location.

This is one of the most important considerations you have to think about when getting a house. Location almost always dictates price, which means while you may be able to afford a townhouse outside Metro Manila, you may have to shell out more for a similar unit in the city. At the same time, its location will affect your life – the amount of time you need to go to work, or the places you will most likely frequent. You need to think of a location that is best suited for your needs.

4. Let's talk financing.

Even if you do not have cash to pay upfront for a house, you may actually qualify for financing. Banks offer loans, as well as developers. Loans could stretch for as long as 25 years, depending on your age. Gauge your capacity to do regular amortizations, and check how it would impact your cash flow. Most financial experts recommend that payments on homes should constitute no more than 1/3 of your regular expenses. Also look at interest rates.

5. Look to the future and appreciation potential.

When buying a house, you should also consider how its value is likely to increase in the future. Look at developments that could possibly lead to an increase in the property’s value – new roads, malls or other commercial developments usually push property values higher. This means that you can actually sell your property later on and stand to earn from the transaction.

6. Remember the warning "Buyer Beware."

When buying property, you need to make sure that everything about the transaction is above board – the title should be free from liens and encumbrances, taxes should have been paid, and association dues settled. You also want an assurance that your house was built well and in keeping with building standards. This is why it is important to know the background of the seller. Some developers have a solid track record, but even then, make sure to do your research about the seller.

7. Ask yourself: To build or to buy?

Do you prefer to build your own house instead of buying one? This allows you to design everything according to your own wishes. However, it is also a more time-consuming process since you have to deal with an architect and contractor, while checking regularly on the work. You also need to find people that you can trust to build your home.

Owning your first home is a major decision, so make sure to think through the process before making any decision. Ask questions, do your research, and think about your life plans before you make the decision.

source: news.abs-cbn.com

Free Online Learning: Time To Invest in Yourself!

One of the most important investments you can and should make is in your continued education. Technological advancements are changing the world, so much so that some skills are becoming obsolete, just as new ones are being sought. This is why it is imperative that you continuously upgrade your skills and ensure that they stay relevant.

Among the reasons why most people do not upgrade their skills is because of the time it will take and the costs involved. Fees for enrollment in a single course can set you back anywhere from P10,000 to P30,000, not to mention having to take time off from work, or giving up your weekends or committing after work hours to attend these sessions.

Thankfully, you can now upgrade your skills, from the comfort of your home or office, using the wealth of resources available online. Many of these free courses have been developed by prestigious organizations, including the world’s top universities. You can also dictate your own pace of learning and choose when to access the courses, allowing you to arrange your schedule in such a way that it does not interfere with your work or other responsibilities.

Best of all, many of these are free. If you want a certificate of completion, some may require a fee plus you will need to verify your identity so they know you are the one doing the assignments and taking the exams. Compared with having to physically attend training sessions, this still comes out more convenient and more affordable.

The lessons are usually taught through a series of videos, and are accompanied by discussion boards where you can see students raising their questions. If you’re decided, all you need will be an internet connection, a curious mind, and the willingness to augment your knowledge.

The internet is filled with aggregators that list free online courses on a wide variety of topics. Here’s a guide to help you navigate the online resources available out there to help you expand your knowledge.

1. Want to become tech-savvy? No shame in admitting you need an upgrade! There are online courses on a wide range of subjects and how they are leveraging on technology, from agriculture, to automotive, to tourism. Instead of laboratories or workshops that brick-and-mortar schools offer, these courses make extensive use of videos and graphics to demonstrate the lessons.

2. Broaden your general knowledge. If you want college or academic courses, there are courses with affiliations with leading global universities. These universities provide the material used for these courses. Some of these offer massive open online courses, as well as a structured classroom-style environments utilizing discussion boards, and quizzes. These courses cover math, science and engineering, economics and finance, computing, and arts and history.

3. Reboot for engineering courses. The online world offers many courses for those who want to learn the latest updates in engineering, where technological advances mean the introduction of new subject matter. These courses are very well suited for the online environment, especially since they involve the use of new software and programs. Complementing these, you can expect lectures, lecture notes, homework assignments, sample tests and other innovative materials.

4. Educators need to sharpen their tools too. If you want to sharpen your skills as an educator, online courses will help you become a more engaging teacher using technology. You can learn how to use video and audio learning as well. The courses can also help you deepen your knowledge on specific topics and show you new ways to interact with your students.

5. New media for writers and communicators. Learn how to use your skills for the new platforms that are emerging, such as the web, social media, and others. You can also learn how to do lay-outs and edit photos. New languages are also learned well in an online environment. You can also learn new languages such as French, Italian, Spanish, Japanese, and a long list of others with the help of online tutors.

There are many more websites offering free courses to suit your need. Explore what’s out there so that your skills do not get outdated.

If you are not yet employed, studying online is the best use of your time as it would contribute to a more impressive resume. If you are already working, it’s still the additional learning is still an asset as it allows you to acquire skills and knowledge that will expand your career options and possibly even help you get that promotion.

source: news.abs-cbn.com

7 budget-friendly ways to usher in holiday cheer

MANILA - December is here and it's officially the start of endless rounds of parties and reunions. While it’s definitely a great time for bonding, the holiday season is also hard on the pocket.

 Here are seven budget friendly ideas for a December reunion with family and friends that are also meaningful and fun.
 
1. Have a merienda party.

Who says that parties always have to be held at dinner or lunch? Hold your get-together during merienda instead, and you’ll be spared from huge costs. Serve up a noodle dish to feed as many as possible, add some barbecue or spring rolls, then throw in a few sweets like the popular puto or rice cake, and you’re good. What’s more, logistics for merienda are much simpler. You can get by without having to get additional tables and chairs, since people can just walk around with the goodies in their plate. If you’re at the office, you can just find a space where you can have your Christmas spread, and enjoy the friendly banter with everyone.

2. Go potluck.

If you really want to have a traditional lunch or dinner, then go potluck this holiday season. There’s nothing embarrassing about asking people to bring their contributions to your yearly get together. It’s also a great way to get people to showcase their cooking, and lets them bring their own favorites to share with everybody else. If you’re the organizer, try to know what guests are bringing so that you won’t have duplications, and so that you can have a wide selection of goodies to share with everyone.

3. Hold a leftovers party.

Or instead of having your get-together before Christmas, have it after the holidays instead for less stress. Invite everyone to bring in their leftovers – the endless hams, salads and desserts that pile up in many people’s homes. Not only is this a great way to bring down costs, it also lets everyone empty their refrigerators of excess food that could spoil. It’s also one way to let everyone taste family favorites. At the rate that Pinoys stack up on food during the holidays, you can be sure you’ll have a great spread of Christmas goodies to share.

4. Go bowling.

Instead of focusing on food, get everyone involved in an activity like bowling. Major malls will let you play for an hour or two, and their rates include bowling shoes and in some cases, food. Everyone can enjoy the game and have a friendly competition, encouraging interaction while leaving enough time for bonding with friends and colleagues. Everyone can partake of the snacks for added fuel as well. Since bowling alleys are located in malls, you also offer guests the convenience of being able to do some Christmas shopping or to meet a few friends before or after your bowling party.

5. Go caroling.

Unleash your musical genius and organize your friends to go caroling--something that you can do just once a year. This is another fun activity that lets you bond with your fellow carolers, while being able to visit family and friends at the same time. What’s more, you don’t even have to spend on food, as most of the homes you’ll visit will prepare a spread for you to partake of. You can even collect funds from this endeavor, which you can donate to a good cause or give to a favorite charity, as agreed upon with your friends.

6. Have some karaoke fun.

If you and your loved ones love music, then you may also enjoy karaoke nights or afternoons this Christmas. Hold your singing spree after lunch or dinner. All you need is a karaoke, a place where everyone can get together, and some light snacks and drinks that won’t interfere with your singing. No need for an expansive food spread, for as long as you have a long list of songs that can get everyone to sing their favorites. Another short cut is to bring everyone to a karaoke bar, where for a few hours, you can enjoy non-stop singing while staying within budget for food and drinks.

7. Hold an outreach program.

Christmas is all about sharing, so why not do away with your traditional party and instead visit one of the many charitable institutions in the city. Instead of spending on your party food, organize a simple merienda for orphans, the sick, the disabled, or the elderly. You can even leave them with some goodies. There’s nothing more fulfilling than to be able to do something for the marginalized sectors of society, and being able to do this with your friends and loved ones will definitely be more meaningful for everyone.

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Grow Your Money is an editorial partnership between news.abs-cbn.com and Citi Philippines to promote financial education and provide helpful information to Filipinos on how to better manage their personal finances.

Visit www.citibank.com.ph for more information.

source: news.abs-cbn.com

With this new credit card, you can 'wave and pay'

MANILA Philippines - Don't you just hate long lines at the checkout counter, waiting for the cashier to process credit card payments?

Here comes a credit card which you can just wave in front of a card reader and pay for your shopping.

Citi Philippines and Visa on Thursday launched Citibank Visa payWave, the first contactless credit card payment technology in the Philippines.

Now Citibank Visa credit cardholders can simply place their cards in front of a Visa payWave reader to pay for items at Metro Manila branches of Robinsons Supermarket Express Lanes and Mercury Drug; buy movie tickets at Eastwood and Lucky Chinatown Cinemas; and buy coffee at Coffee Bean and Tea Leaf.

In November, the card can be used at McDonald's branches in Metro Manila.

"This is a revolution in the way we pay... Contactless payment means you tap the card on the terminal, and a transaction occurs a lot quicker than it used to be, Iain Jamieson, Visa country manager for Philippines and Guam, said in a press conference in Makati City.

The card is typically used for small payments from as low as P1 to P2,000. "This (card) is typically for smaller payments. In the Philippines, it is below P2,000, you no longer have to sign a receipt and you don't have to get the receipt if you don't want to," he said.

Purchases above P2,000, the payWave card can be used as a credit card where a signature or PIN is required.

Jamieson noted payWave transactions are three times faster than cash payments, and can reduce long lines at stores and supermarkets.

Citi Philippines is confident about the prospects of the contactless payments in the country.

"We are bringing this new way to pay, new innovation to about 1 million credit cardholders with Citi Philippines," Batara Sianturi, Citi Country Officer for the Philippines, said. "People buy on iTunes, Amazon and it's all paperless and we're bringing this reality to some of our partners here."

Bea Tan, consumer business manager for Citi Philippines, said the Visa payWave technology provides convenience and security for its customers.

"We have used the latest chip technology in our Visa payWave credit cards, so our customers should not be worried about cards having to leave their hands. They won't have to worry about it being skimmed," Tan said, noting the card does not have to leave the customer's hand during payment.

Citi has already started issuing the payWave cards for 6 out of 8 of its Visa products. Existing cardholders may request for reissuance of cards. They will also receive the contactless cards upon expiration of their old ones.

source: www.abs-cbnnews.com