Continued revenue squeeze in Korea forces Citibank to shut down 22 branches, creating an air of uncertainty for many on-the-ground staff.

Citibank Korea has shuttered 22 of its branches in the first nine months of 2013, bringing its total office number in the country down to 196, according to a report by the Financial Times.

The closures happen as the Korea business continues to suffer through weak loan growth, regulatory interventions and a low interest rate environment, the news service writes. 

For the third quarter 2013, Citibank Korea posted a 53.3 per cent drop in net earnings to KRW27.9 billion ($26.4 million), compared to the same period in 2012. The Asia consumer banking business as a whole also saw a 2 per cent drop in the Q3 revenues; net income fell 15 per cent from a year ago to $690 million.

At present, Citibank Korea is said to be facing a potential labour strike by employees who are affected by the shutdowns. Citing an unnamed bank official, local news service The Korea Times wrote that the reductions were made by merging adjacent branches and re-posting employees at affected branches to headquarters and other offices that are short-staffed.

Citi declined to comment on the issue when contacted by WealthBriefingAsia.