This week the bank wrote to clients to say the UK-based business, Citibank International Limited, which operates a small number of branches across some 20 European countries, would be taken over by Dublin-based Citibank Europe Plc.
“From a strategic perspective for Citi, moving to a single pan-European bank is expected to reduce operational and regulatory complexity, capital requirements and cost,” the company told clients.
Analysts said UK rules that require banks to hold a higher level of cash in reserve than other European countries do was likely to be a factor behind the move but that they did not expect to see a stream of other banks leaving the UK.
“The primary reason is simplification, mirroring Citi’s strategy of creating a simpler, safer, stronger institution,” a spokewoman for the bank said.
She said the move would not lead to any job losses.