NEW YORK – Citigroup’s Russian consumer banking franchise that has been put up for sale had first quarter revenue of $32 million, down 6% from a year earlier, the bank disclosed in a quarterly securities filing on Monday.
Citi said its Russian consumer business had been hurt by sanctions against Russia, the bank’s decision not to open new accounts and a reduction in investment sales.
The revenue figure, which is too small to normally be disclosed given Citi’s $19 billion of quarterly revenue, came in comments on the results of legacy franchises that the bank is divesting.
“Citi has commenced sale discussions with a number of potential buyers,” the filing added, in line with recent comments by Chief Executive Jane Fraser. It noted that Citi also wants to sell its Russian commercial banking business, which caters to smaller firms.
Citi continues to do business for multinational corporate clients as they shut down their Russian operations. It said sanctions have increased its operational risks and that its response “has included enhanced operational controls and management oversight to maintain compliance and minimize disruption to client operations.”
The filing also showed that more than one regulator is probing employees’ use of unauthorized communications, without naming them. In February Citi disclosed that the Securities and Exchange Commission was investigating the matter.