Citibank Suspend Commercial Mortgages and Personal Loans

Wed, 2008-10-29 16:53 — Guest

Citibank announcement.
"Across Asia Pacific and in Australia we are reorganising Citi to make us a more efficient organisation so we can continue to grow.
This focus on improving efficiency and productivity has become essential given the challenges of the current economic and financial environment. It has meant re-looking at our business with a new lens and making decisions to invest in core businesses and products where we have the greatest potential for growth while reducing our activity in some others.
As a result, and after an extensive review, we have decided to cease new-to-bank activity in two products. From November 30, 2008 we will suspend new-to-bank commercial mortgages while continuing to manage and maintain existing commercial mortgage customer relationships. It is most important to note that this change does not impact our new-to-bank consumer mortgages portfolio – which constitutes approximately 85% of Citibank Australia’s mortgage business, a business we wish to significantly grow.
At the same time we will cease new-to-bank unsecured personal installment loans. We will manage and maintain existing accounts and continue to offer unsecured personal installment loans to existing Citi customers. We consider this decision to be a pause, rather than a completed cessation of operations in this space and we may look to develop and invest in these businesses in the future when we’re able to direct the resources they deserve.
Citibank remains focused on being the lender of choice for Mortgage Brokers and I want to assure you these changes have not been taken lightly; they follow a comprehensive review of prevailing market conditions, direct broker feedback, opportunities for future growth and providing the best-in-class service to our customers and accredited mortgage brokers, the most critical aspect of a broker/lender relationship.
I’d like to thank you for your understanding and continued support as we build a better proposition for our broking partners.
Regards,
Peter Hayward"
Head of Distribution & Marketing
Citi