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

Rate cuts good, but 'clarity' over global issues better for business: Citi CEO

MANILA - As central banks around the world cut interest rates to boost their economies, the head of one of the world's largest financial companies said interest rates can only do so much and businesses want "clarity" more. 

Citi CEO Mike Corbat said cutting rates won't necessarily stimulate economic activity, as businesses hold off on investing amid uncertainties over issues like the US-China trade war, the US-Mexico-Canada trade deal, and Brexit. 

"We can have the conversation in terms of whether or not quantitive easing in some places has overstayed its functionality," Corbat said in an exclusive interview with ANC's The Boss. 

He said the financial industry was particularly affected, as interest rates in Europe are already negative.

"Banks weren't really built around a business model of negative rates," Corbat said.

Besides not being able to charge fees for holding clients' money, businesses also don't necessarily borrow more because rates are low, he added. 

"What businesses want is clarity and we can invest on the back of that," Corbat said.

Despite the uncertainties over trade issues, the global economy remains resilient, Corbat said, thanks to consumption. 

Consumers powered the recovery of the world economy following the global financial crisis, and they are behind the resilience of the world economy today, the Citi chief said. 

"The consumer has been phenomenally resilient and remains so today."

Corbat said he is also optimistic about the digitalization of finance, and Citi will continue to "invest heavily" in technology. 

Citi recently partnered with Grab to launch a co-branded credit card in the Philippines, the first in Southeast Asia.

source: news.abs-cbn.com

Transact easily in eight different currencies through this mobile bank app feature

Through the Citibank Global Wallet, you can use one Debit Mastercard for international transactions without the hefty fees.Through the Citibank Global Wallet, you can use one Debit Mastercard for international transactions without the hefty fees.



Do you love to travel but hate international bank transaction fees? Well, travelers can now access eight currencies in one Debit Mastercard with Citi. Through its new feature called Citibank Global Wallet, customers can make purchases overseas at point-of-sale or online, and withdraw cash from Citibank ATMs without incurring additional currency conversion charges.

Citi is the first bank in the Philippines to introduce this feature, linked to the Citigold and Citi Priority Debit Mastercard. Customers now have access to eight foreign currencies, including Philippine Peso, US dollar, Euro, Australian Dollar, Sterling Pound, Japanese Yen, Hong Kong Dollar and Singapore Dollar.

Easy access

With the Citi mobile app or Citibank Online, existing Citigold and Citi Priority bank account holders can turn on Citibank Global Wallet and instantly open an account in any of the eight foreign currencies. To fund their newly opened foreign currency account, they can transfer funds online from their existing US dollar or Euro account. Citibank Global Wallet automatically switches to the relevant currency.

So if a customer is travelling to Sydney, all point-of-sale, online transactions and overseas ATM cash withdrawals will be automatically debited from their Australian Dollar account as long as there is sufficient balance.

“Citibank Global Wallet is perfect for travelling overseas, making online purchases and transferring foreign currencies for payments,” says Citi Philippines retail bank head Therese Chan. “Customers don’t have to go all the way to a bank or to a money changer to exchange foreign currency before a trip. They don’t even have to worry about bringing a big amount of cash with them. They can use the wallet anytime, when visiting family or friends in those countries, or whether travelling for business or for leisure.” 

For more information, visit Citibank.com.ph

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 Valentine's Day gifts that last

MANILA - Valentine’s Day is just a heartbeat away. Are you planning on giving chocolates and flowers again to your special one?

Although romantic tokens are always popular, why not consider gifts that will last beyond Valentine’s Day and make a lasting impact on your significant other’s life? These gifts reflect long-term thinking and express your deep concern.

Unlike presents that you can just pick up from a store, these gifts entail a bit of research or “digging” on your part, which show that you are willing to give the gift of time and security to your loved one.

 Here are seven gifts that will clearly show you are "investing" in your relationship.

1. Art.

Artwork by the masters is always valuable, but if you can’t afford one, there are plenty of other equally promising pieces. An art piece, especially by an up and coming artist, is a gift whose value can grow over time. This is not limited to paintings, but also to sculpture and other art forms.

The best part? Works of art come in different price points, so you can acquire one within your budget, Spend time in galleries and check out art exhibits to get a feel of what’s out there. Make sure to do your research before you buy anything. Make sure that you get a piece according to your partner’s taste.

2. Jewelry.

The best thing about jewelry is that they are not only very romantic when given as a gift, they also appreciate in value. Gold prices, for instance, have been rising over the past few years, so you can pick up a ring, necklace, or earrings that your loved one will like. Diamonds and precious stones can likewise appreciate over time. Before buying jewelry, check out an appraiser so you know you’re getting something of value that will appreciate over time.

3. Expensive time pieces.

If your loved one likes time pieces, get a top-end watch. Usually, these are mechanical, handcrafted pieces that are laden with precious stones. Unlike new models, these pieces can last through generations while keeping their value. Do some research to know what these pieces and brands are.

4. Mutual funds.

Mutual funds may not exactly sound romantic, but when you give this to a loved one, you are showing long-term concern. The nice thing about mutual funds is that you can put in an amount that you are comfortable with. Later on, you can continue to top up this amount or you can leave it to your loved one to continue doing so.

Mutual funds can be invested in a variety of instruments with different risks that suit the recipient’s profile. You can get these at any financial institution, whose experts can readily answer your questions.

5. Home improvement.

Show your love by investing in a home improvement program, which will not only help improve the atmosphere that contributes to your loved one’s well-being, but can also improve the value of your home. Don’t just focus on beautification. You can also find ways to make full use of your land and invest in disaster-proofing your home, which are steps that can definitely add to its value.

6. Skills enhancement.

Enroll your loved one in a program that can enhance or upgrade his or her skills, possibly in new fields. Learning is a lifelong process, and the benefits of joining this program is sure to last for a long time. There are many options available to suit different inclinations and learning priorities. You can check out online courses, as well as face-to-face workshops offered by universities and other skills training providers.

7. Wellness programs.

Your loved one’s physical, mental, and emotional well-being is important to his/her happiness. It also ensures good health and freedom from costly medications. For Valentine’s, why not enroll your loved one in a gym or a fitness program? Alternatively, yoga classes or a visit to the spa for alternative treatments are also good for physical, mental, and emotional well-being.

For this coming Valentine’s Day, give a gift whose positive effect will last for more than a day. This is a sign of true love and a real gesture of a lifetime.

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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

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

Searching for your first home: Rent or buy?

MANILA - Choosing your first home is likely to be one of the biggest financial decisions that you will make. As with all purchases, you can either feel you made the right choice, or regret the investment.

This is why some prefer to initially rent or lease, and then decide whether the neighborhood is right for them. But they could also miss out on the opportunity to buy when the price is more affordable.

So should you rent or buy your first home? The quick answer to this question is it depends. The decision to buy or rent depends on so many factors that varies per individual: your lifestyle, finances, future plans, and even the current real estate market.

What is right for one person may not be suitable for another. For instance, a newly married couple whose career plans include moving abroad would be in a totally different position from a large family with an entrenched business in a specific location.

There are pros and cons for each option. Here’s a run-down of the upsides and downside of buying and renting.

Buying a house means being able to hold on to a hard asset that almost always appreciates in value.

It also lets you and your family establish roots in the community.

Plus it allows you to plan out your life--where your kids will study, where you will work--for the long term.

But expect this to put a dent on your cash flow, since you will need to put in equity, which could go anywhere from 20-60% of the property value.

It also means paying real estate taxes and maintenance costs.

Should you need to dispose of it at some point, you will find this may not always be easy, and you could be at the mercy of market conditions.

Renting is easier on the pocket--you only need to worry about a downpayment and security deposit.

It also gives you a measure of flexibility. If you’re unhappy with the place or your landlord, you can simply end your contract.

 It also means not having to worry about taxes and maintenance costs, which are the landlord’s concerns.

However, property rentals rise, and it means you have to be ready to deal with increasing rental fees, depending on market conditions.

Rent is an outright monthly expense, and does not enhance your asset base.

You have to live with the terms set by the landlord. For instance, the landlord may prohibit you from keeping pets, or may not allow you to drill holes for your pictures on walls.

Still not decided? Look at each of these five factors for more help:

1. Your current life stage and lifestyle. How old are you? The younger you are, it’s more likely that your options are wide open. Career-wise, there’s a possibility of finding a new job, within or outside the city you are now in, which means renting might be better for you. Are you single or do you have a growing family that needs more space? If it’s the latter, consider how owning or renting a home affects their lifestyle.

2. Your future plans. Do you have any plans of moving abroad? If so, then you might be better off renting a starter home. Otherwise, you will have to deal with selling off your home when you leave the country. This may not come easy when you’re about to migrate, and this may not even be at a price acceptable to you. Don’t forget your significant other, if you have one. If you purchase that starter home, do you think your prospective spouse, whose parents live far away, would be happy to move there?

3. Your financial status. Can you afford to pay the down payment for the starter home that you want? If you are thinking of taking out a loan for this home, do you have enough income to support the monthly payments? Note that your expenses as a homeowner will not be limited to just the mortgage payments, but will also include maintenance costs, real estate taxes, and in some cases, condominium dues and homeowner’s fees.

4. The neighborhood where the property is located. It’s been said that there are three things to consider when you buy property, that’s location, location and location. Let’s say you have identified the neighborhood where you intend to stay for the medium term. Evaluate the neighborhood and determine if it has good potential to become a growth center. What are planned developments being undertaken by the government and other private companies in the area? If the area’s potentials look promising, and if your finances permit, then it may be worth purchasing your starter home here. On the other hand, if the neighborhood is riddled with problems such as flooding, security issues, and urban blight, you may wish to simply rent a place for the time being.

5. The current real estate market. Don’t forget to consider the current real estate market before deciding if you would purchase or just rent a property. It is always better to buy when it is a buyer’s market than a seller’s market. Plus, look at interest rates if you intend to take out a loan for this purpose. The lower the rates, the cheaper it is to buy a starter home.

source: www.abs-cbnnews.com