![]() “In an environment in which interest rates are very low and investors are still somewhat risk adverse despite economics, it is hard to make money." Falling Rates “It is very difficult to make money from lending in Japan unless you’re in higher-margin consumer lending or if you’ve got a very large scale of operations like the megabanks have," said David Marshall, an analyst at CreditSights in Singapore. Citigroup is considering a retreat from Japan after pulling back from retail banking in markets with low returns, including Spain, Greece and Turkey.Ĭitigroup’s history in Japan dates back to 1902, when a predecessor opened its first branch in Yokohama. Cash and deposits at the nation’s biggest bank and its two closest rivals piled to 82 trillion yen last quarter. Unprecedented monetary stimulus has cut the spread between lending rates and deposit rates at Mitsubishi UFJ Financial Group to a record low in the first quarter. ![]() The US bank has begun approaching Japanese companies including the three biggest lenders, trust banks and regional lenders, a person familiar with the matter said this week. Citigroup earned less from running a bank in Japan than its global chief executive officer’s salary last year, helping explain why the US lender is considering selling the consumer business as Abenomics crushes loan returns.Ĭitibank Japan’s net income of 1.34 billion yen ($US12.9 million) in the year ended March compared with CEO Michael Corbat’s total 2013 compensation of $US14.5 million.
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