NEW YORK (TheStreet) -- Citigroup (C) was falling 2.48% to $50.62 on Thursday after Chief Financial Officer John Gerspach announced the company would stop operating Korean branches that aren't near large cities, according to Bloomberg.
The New York-based lender, whose international consumer bank is the largest among U.S. lenders, will release the costs for the changes later this year, according to Gerspach. Citigroup has been amending its plans in Korea for the last 18 months in an effort to diversify its portfolio, he said. The company has noted that Korea will cause a drag on Asian revenues throughout 2014.
Citigroup CEO Michael Corbat has tried to improve returns by reducing the consumer operations in some countries and instead focusing on wealthier clients in major cities throughout the world. Gerspach said this restructuring should make sure that the branches "are more aligned with that urban-type of strategy. We have done some of that, but hope to do that in earnest this year."
Citigroup Korea, the company's local subsidiary, ran 196 branches at the end of September, down from 238 at the end of 2004, according to Bloomberg. Citigroup is third among U.S. lenders by assets and operated more than 3,700 retail outlets as of Dec. 31, according to the company's fourth-quarter report.
Corbat also told Bloomberg Television at the World Economic Forum in Davos, Switzerland that customers should not expect Citigroup to offer unlimited financial services in the future.
"People shouldn't want us to be everything to everyone," he said. "We've gone through a pretty significant transformation. We've got the right business mix."