[Korea sinyuncheol financial newspaper reporters - Citibank Korea (CEO bakjinhoe, less than Citibank)) embarked on this point greatly reduced. Foreign banks, including Citibank, have received generous assessment that the domestic profit reduction in capital outflows through the meantime, high dividend policy. Here the employment generating capacity is reduced to the point where if progress is to be decreased is room to receive criticism that focused on generating short-term profits greater than the long-term corporate management. Foreign banks withdrew Korea market story is a story appearing frequently in the banking industry.
◇ branch greatly reduced, firestorm concerns
It announced the Citibank Consumer Finance Group Branches Management Strategy in late March and the current 126 (branch offices, including consumer banking branches basis) 25 points, leaving only the remainder naenwatda plans of closing. Recent commercial banks is a strategy for closing the most radical branches like Citibank had come to the store customers showing reduced non-face-to-face transactions hwalbalhae point reduction movement. This will also occur if the situation is not even a Citibank branch one place in the local area. Jeju, Changwon and Ulsan, Cheonan, Cheongju is inde situation in gotman a point on an existing process is all closed in this decision. The complaint is the background and financial concerns accidents increases.
In fact, the Financial Supervisory Service to avoid accidents due to financial, human resources point reduction to commercial banks started to strengthen accident prevention activities. FSB opened a "workshop for strengthening internal controls, which last 12 days banking compliance officers and compliance and internal audit department manager in charge of attendance.
You can bank employees in 2016 it was 114,775 people, sales people are more than the previous year in 7103 where branches are 2,248 people, down where the situation 175. Customers will suffer a bank employee confusion not know the facts before the store consolidation, or are not familiar with the staff after the relocation work is held in order to reduce the case that the financial crash. Typically, if there are stores I found a branch went to repay the loan consolidation-related complaints are old and location vary dwaetdaneun the arrears.
Citibank side beyond the 90% non-face-to-face transaction is julyigetda stance is the least side effects on the situation. But this union with Citibank questions are being deployed to produce video content will replace the bank, as they cause discomfort if customers do not have to be directly traveled to find the spot.
◇ Company vs Employee disagreement
Brendan Carney Citibank Consumer credit geurupjang is that "the next generation of consumer finance strategy is a strategy needed in the process of reshaping the financial services industry as a supplier mainly to finance consumer-oriented, the pursuit of harmony and synergy of facing channels and the non-face-to-face channels." This He explained the strategy. In addition, "there is a need to extend financial help consumers to access financial services from anywhere, regardless of location. The Customer Focus Center, Customer Value Center to introduce the same new spirit is out of the financial professionals rather than create a call center from a traditional branch channels extend to the mobile, Internet and digital channels. Workforce reductions in the next generation of consumer financial strategy execution process is not planned at all, "he added.
But this contradicts the position that the company is described in the internal Citibank. It is a policy that critics have called a relative and only rich people are excluded from the services harms the public nature of the banks to which Citibank may well increase the asset management center called non-face-to-face with leading channel. Asset Management Center main goal is to increase revenue from sales to substitute products.
Another is telling employees that provide balanced opportunities for flexible working schedule as work-life local branch staff geotinde get parenting problems due to gyeokji bachelor nonexistent measures for this suspicion the ref will eventually lead to natural retirement It has.
◇ ve new bonds also give existing employees plates
Due to the Citibank branch closure strategy existing staff seemed anxious to employment stability. Citibank union in a statement "the group consumer banking branches operating strategy, the opposition said, and went the wrong way do not think the staff entrance. The union is looking ahead as pre-work for large-scale workforce restructuring against the decision of the management.
According to a Citibank branch union employees missing in store integration it is partially incorporated into certain points the rest argued that go into Customer Value Center (inbound) and Customer Focus Center (outbound). Customer Value Center services are regular customers to a mobile, high net worth customers are guided to WM (Asset Management) Center. Customer Focus Center will work similar to the work of existing handles telemarketing department, where a card loans primarily sold.
The reason for their opposition is that such employees did not consider the issue of the geochwi those areas that it is unfair to give a moving call center work primarily in the context accumulated branch experience. Another perspective is that you can not agree how to enter that ensure reliability through face-to-face dealings with the problem of neglect of local customers needs publicity hinder the bank with yen. The union went on in a manner corresponding to the first point plan to protest in front of our shop.
There are also likely to undermine the strategy of domestic employment. Citibank has not conducted a new bond between the years progress, only small occasional hiring Experienced oriented. Disappeared from the existing situation to the point it goes to the transferred portion of the call center services are good jobs will have been lost to mass-produce a relatively poor job.
Sector to foreign banks contributed to the country's trend that steadily shrinking. Typically there is a social contribution, according to the Bank of Social Contribution Activities Report, which is published annually, the Bank Association of Foreign Banks Social Contribution amounts are steadily declining since 2012. Full rate also two bank accounts in the total related costs of banks have fallen to less than 2.21% until the last in 2015, and three years later showed a 4.84% in the last half of 2012.
◇ grow anxious to respond in the event of accidents Poor
Branches and staff are all reduced to solving existing problems Citibank skills are also in doubt sector. The accident occurred because the deal is insufficient precedents. The thinking is done at the 28 illegal withdrawals from customer accounts, Citibank branches in Thailand over the last 8-9 days to close cases have occurred. Chungho that occurred in March will not cache ATM (Automatic Teller Machine), 60 master criminals use this information gotta been infected with malicious code card information were stolen massive outflow of money over Thailand.
So far eoteuna not a problem only for Citibank and other banks have different ways in the follow-up. FSS is required to identify a malware infection of the fact that ATM beforehand and take action on the 35 banks and credit card companies, including Citibank. However, Citibank did not follow actively the FSS requirements. The remaining financial institutions, except for Citibank are blocked prior to withdrawing the application is coming from overseas ATM and took steps to take to contact the customer to check if you are a person deal. According to the Citibank financial reportedly not deployed to customer interaction guidelines due to hacking incidents on the spot. Precautionary measures and post-treatment were both insufficient. Citibank is a stance because many customers are uncomfortable in size than other bank cards abroad did not take the case being done.
◇ repeated up to three high dividend controversy, reflux that tricks
Citibank was 360 won per share for common stock, preferred stock 410 won per share in March, held a general meeting of shareholders to dividend. Total 1145 dividend is 79,170,570 won billion. But decreased by 1.3% (W 1.6 billion) than 116.2 billion won in the previous year, and subjected to two years in a row above 100 billion won dividend. Last year, net income of Citibank was 6% decrease compared with the previous year to 212.1 billion won. Profit rose further, but the odds line. Dividend payout ratio of Citibank highest among commercial banks to 49.8%. Dividend payout ratio of domestic banks is 20% of the average-to-multipoint.
Citibank has half net transfer abroad with the majority shareholder. Citibank is Citibank's Overseas Investment (COIC) Citigroup's subsidiary holds a 99.9% stake in ordinary shares will not be retained.
Only make money in the country has been pointed out that the first profits abroad is repeated every year. Here are suspected Citibank has raised the dividend further in order to avoid reflux years. Corporate income tax reflux are institutions that do not use more than 80% of a company's profit on investment and wage growth, dividend tax of 10% of the amount below. In the case of financial services such as capital investment with little or no service to write more than 30% of the year's profit, except for investments in wage increases and dividend tax may be avoided. Citibank has received about 16 billion years reflux apply by 2015. It is the only bank jungeseon.
Dividend payout ratio of Citibank were already applied in 2015, it received a three-year reflux. Citibank is the time spent 116.1 billion won 41.6% of consolidated net profit of 279.3 billion won in dividends. Considering that this year's dividend payout ratio increased further to 49.8% Shem is difficult to avoid the more intellectual posted a higher dividend to eventually do pay taxes than to choose investments and wage increases to help the domestic economy.
Citibank is the position even if no piece was then subjected to high dividend issue possess excellent asset quality. Late last year, based on the Bank for International Settlements (BIS) capital adequacy ratio of Citibank is the highest among domestic banks with 18.58%. There are also two own justification Citibank position in respect of the three reflux. Citibank Lotta transactions, foreign banks once the nature of the type derived ttaraseon derivatives trading losses are deducted from net income. However, the income tax base is more likely to receive a derivatives trading losses have not been deducted income tax years applied reflux listed higher compared to commercial banks. Other sonbi recognized in part have adverse side compared to domestic banks.
The banking industry is also the appearance of foreign banks to raise their hands in high dividend controversy. Hayounggu enriched Korea Federation of Banks chapter Year's second entry in the press conference only to banks high dividend foreign shareholders' equity in the "bank for the intellectual advantageous, and high asset quality, if the dividend is that the year one surface provisioning scale even higher How about me again, "he said. And President, saying "the world is the dividend payout ratio in our country is one of the low country." "In particular, the Bank is not a growth stock" and "The shares should have an attractive investment dividends," he explained.
And chairman of the argument is interpreted as a position on the controversial happens only when the dividend season. Dividend policy is at the center of controversy due to concerns about capital outflows, but at the sole discretion of the bank, more than half of the shareholders are foreign investors, the situation for shareholders to maximize profits. President and captured the body for more than 30 years in Citibank as Citibank origin.
Foreign banks, including Citibank now has recorded a lower level than some local banks. Nevertheless, rather than increasing sales capacity in the near future the appearance cling to short-term operating costs and labor costs and earnings expansion. This is why Citibank Korea market withdrawal controversy is repeated.
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