Significant Disposals

As of December 31, 2022, Citi had entered into sale agreements for nine consumer banking businesses within Legacy Franchises. Australia closed in the second quarter of 2022, the Philippines closed in the third quarter of 2022, and Bahrain, Malaysia and Thailand each closed in the fourth quarter of 2022. Entry of sale agreements for the other four consumer banking businesses has resulted in the reclassification to HFS on the Consolidated Balance Sheet of approximately $20 billion in assets within Other assets,

including approximately $12 billion of loans (net of allowance of $164 million), and approximately $17 billion in liabilities within Other liabilities, including approximately $16 billion in deposits. Of the nine sale agreements, the five below were identified as significant disposals as of December 31, 2022. The Taiwan and India sales have yet to close and are subject to regulatory approvals and other closing conditions, as are the potential sales of the Poland and Mexico consumer banking businesses.


			December 31, 2022
In millions of dollars			Assets												Liabilities
Consumer banking business in	Sale agreement date	Expected close	Cash and deposits with banks		Loans(1)		Goodwill		Other assets, advances to/from subsidiaries		Other assets		Total assets		Deposits		Long-term debt		Other liabilities		Total liabilities
Australia(2)	8/9/21	closed 6/1/2022	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Philippines(3)	12/23/21	closed 8/1/2022	—		—		—		—		—		—		—		—		—		—
Thailand(4)	1/14/22	closed 11/1/2022	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Taiwan(5)	1/28/22	second half 2023	123		7,865		202		4,758		198		13,146		10,049		—		237		10,286
India(5)	3/30/22	first half 2023	25		3,423		329		1,924		114		5,815		5,266		—		204		5,470


	Income (loss) before taxes(6)
In millions of dollars	2022		2021		2020
Australia(2)	$	193	$	306	$	181
Philippines(3)	72		145		42
Thailand(4)	122		139		93
Taiwan	140		282		311
India	194		213		117

(1) Loans, net of allowance as of December 31, 2022 includes $64 million and $37 million for Taiwan and India, respectively.

(2) On June 1, 2022, Citi completed the sale of its Australia consumer banking business, which was part of Legacy Franchises. The business had approximately $9.4 billion in assets, including $9.3 billion of loans (net of allowance of $140 million) and excluding goodwill. The total amount of liabilities was $7.3 billion including $6.8 billion in deposits. The transaction generated a pretax loss on sale of approximately $760 million ($640 million after-tax), subject to closing adjustments, recorded in Other revenue. The loss on sale primarily reflected the impact of an approximate pretax $620 million CTA loss (net of hedges) ($470 million after-tax) already reflected in the AOCI component of equity. The sale closed on June 1, 2022, and the CTA-related balance was removed from AOCI, resulting in a neutral CTA impact to Citi’s CET1 Capital. The income before taxes shown in the above table for Australia reflects Citi’s ownership through June 1, 2022.

(3) On August 1, 2022, Citi completed the sale of its Philippines consumer banking business, which was part of Legacy Franchises. The business had approximately $1.8 billion in assets, including $1.2 billion of loans (net of allowance of $80 million) and excluding goodwill. The total amount of liabilities was $1.3 billion, including $1.2 billion in deposits. The sale resulted in a pretax gain on sale of approximately $618 million ($290 million after-tax), subject to closing adjustments, recorded in Other revenue. The income before taxes shown in the above table for the Philippines reflects Citi’s ownership through August 1, 2022.

(4) On November 1, 2022, Citi completed the sale of its Thailand consumer banking business, which was part of Legacy Franchises. The business had approximately $2.7 billion in assets, including $2.4 billion of loans (net of allowance of $67 million) and excluding goodwill. The total amount of liabilities was $1.0 billion, including $0.8 billion in deposits. The sale resulted in a pretax gain on sale of approximately $209 million ($115 million after-tax), subject to closing adjustments, recorded in Other revenue. The income before taxes shown in the above table for Thailand reflects Citi’s ownership through November 1, 2022.

(5) These sales are expected to result in an after-tax gain upon closing.

(6) Income before taxes for the period in which the individually significant component was classified as HFS for all prior periods presented. For Australia, excludes the pretax loss on sale. For the Philippines and Thailand, excludes the pretax gain on sale.

Citi did not have any other significant disposals as of December 31, 2022.

For a description of the Company’s significant disposal transactions in prior periods and financial impact, see Note 2 to the Consolidated Financial Statements in Citi’s 2021 Form 10-K.

Other Business Exits

Wind-Down of Korea Consumer Banking Business

On October 25, 2021, Citi disclosed its decision to wind down and close its Korea consumer banking business, which is reported in the Legacy Franchises operating segment. In connection with the announcement, Citibank Korea Inc. (CKI) commenced a voluntary early termination program (Korea VERP). Due to the voluntary nature of this termination program, no liabilities for termination benefits are recorded until CKI makes formal offers to employees that are then irrevocably accepted by those employees. Related charges are recorded as Compensation and benefits.

During the first quarter of 2022, Citi recorded an additional pretax charge of $31 million, composed of gross charges connected to the Korea VERP.

The following table summarizes the reserve charges related to the Korea VERP and other initiatives reported in the Legacy Franchises operating segment and Corporate/Other:


In millions of dollars	Employee termination costs
Total Citigroup (pretax)
Original charges in fourth quarter 2021	$	1,052
Utilization	(1)
Foreign exchange	3
Balance at December 31, 2021	$	1,054
Additional charges in first quarter 2022	$	31
Utilization	(347)
Foreign exchange	(24)
Balance at March 31, 2022	$	714
Additional charges (releases)	$	(3)
Utilization	(670)
Foreign exchange	(41)
Balance at June 30, 2022	$	—
Additional charges (releases)	$	—
Utilization	—
Foreign exchange	—
Balance at September 30, 2022	$	—

The total estimated cash charges for the wind-down are $1.1 billion, most of which were recognized in 2021.

See Note 8 for details on the pension impact of the Korea wind-down.

Wind-Down of Russia Consumer and Institutional Banking Businesses

On August 25, 2022, Citi announced its decision to wind down its consumer banking and local commercial banking operations in Russia. As part of the wind-down, Citi is also actively pursuing sales of certain Russian consumer banking portfolios.

On October 14, 2022, Citi disclosed that it will be ending nearly all of the institutional banking services it offers in Russia by the end of the first quarter of 2023. Going forward, Citi’s only operations in Russia will be those necessary to fulfill its remaining legal and regulatory obligations.

On December 12, 2022, Citi completed the sale of a portfolio of ruble-denominated personal installment loans, totaling approximately $240 million in outstanding loan balances, to Uralsib, a Russian commercial bank, resulting in a pretax net loss of approximately $12 million. The net loss on sale of the loan portfolio included a $32 million adjustment to record the loans at lower of cost or fair value recognized in Other revenue. In addition, the sale of the loans resulted in a release in the allowance for credit losses on loans of approximately $20 million recognized in the Provision for credit losses on loans.

In connection with the portfolio sale, Citi also entered into a referral agreement to transfer to Uralsib a portfolio of ruble-denominated credit card loans, subject to customer consents. The outstanding card loans balance was approximately $219 million as of the fourth quarter of 2022. Citi will refer credit card customers, who at the customers’ sole discretion will be eligible to refinance their outstanding card loan balances with Uralsib.

During 2022, Citi recorded a pretax charge of approximately $28 million as Compensation and benefits composed of severance costs reported in the Legacy Franchises operating segment and Institutional Clients Group.

In connection with the wind-down plans of the Russia consumer and institutional banking businesses, Citi expects to incur approximately $190 million in costs, primarily through 2024, largely driven by restructuring, vendor termination fees and other related charges. These costs do not include the impact of any potential portfolio sales.