In order to focus on digital services, Citigroup Inc. C plans to shut three of its four branches in London. It intends to continue operating the Citigold and Citigold Private Client Center at its European headquarters in Canary Wharf.
The bank disclosed its plans in an email to its clients. It seeks to shut its branches in the City of London, Mayfair and Canary Wharf districts in the next two months.
The major reason for this is the consumers’ increasing preference for online platforms to meet banking needs.
Citigroup mentioned that wealth management is best suited to its client base. Thus, it felt the need to close other branches as they do not match its strategy.
Also, the bank plans to open more wealth management centers going forward.
Due to this digitization trend, many established banks are shutting down their branches, one of them being Royal Bank of Scotland Group Plc RBS. It will close about 180 U.K. and Irish branches.
Lately, Citigroup has been noticed to be involved in streamlining operations internationally and managing expenses. Also, its ongoing investments are expected to boost performance. However, it remains burdened with many lawsuits and regulations.
The stock returned 23.9% over the last six months, compared with the Zacks categorized Banks - Major Regional industry’s increase of 28.3%.
Currently, Citigroup carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A couple of other finance stocks carrying the same Zacks Rank include Comerica Inc. CMA and First Defiance Financial Corp. FDEF.
Comerica’s current-year earnings estimates were revised 1.7% upward over the last 30 days. Also, its shares have gained 73.8% in the last year.
First Defence witnessed 1.2% upward revision in its current-year earnings estimates over the last 30 days. The company’s share price increased 25.7%, in the last year.
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Comerica Incorporated (CMA): Free Stock Analysis Report
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Royal Bank Scotland PLC (The) (RBS): Free Stock Analysis Report
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