PHILADELPHIA (12/20/13)--A global bank has decided it isn't making enough money from depositors in Philadelphia, so it is pulling out all its branches in the area.
Citigroup announced it will close the last 10 branches of its 23 Citibank retail bank branches in the Philadelphia area in early 2014.
The ninth largest retail bank in the area, Citibank closed 13 branches in the area last year (Philadelphia Business Journal Dec. 17). It cited four key reasons for the closures: operational costs, ability to gain efficiencies, economic conditions in the area and real estate.
The closures include seven branches in Philadelphia plus in its suburbs in Bala Cynwyd, Cherry Hill, N.J., and Wilmington, Del.
The branch closings, coupled with the announcement by Sunoco that it is moving its headquarters elsewhere, will cost the city jobs, said ABCLocal.go.com (Dec. 18). The station reported Citibank's deposits in the area had increased to $2 billion in local deposits, but it was not happy with its performance against other big banks such as Wells Fargo, TD, PN,Citizens and Santander (Philadelphia Inquirer Dec. 18).
"For global behemoth Citibank, staying in Philadelphia is not financially worthwhile," said the station.
The New York-based Citigroup spent tens of millions of dollars opening 23 branches in the area, beginning in 2006, to broaden its geographical footprint, said the Inquirer.
Citibank did not say how many employees would be impacted or whether they would be offered severance packages. A Citibank spokesperson said Philadelphia remains an important market for several of Citi's other businesses, including municipal finance, equities, commercial banking and private banking.