Citigroup to shut most branches in Japan

Citigroup Inc. will close most of its Japanese consumer finance branches and suffer a $370-million fourth-quarter loss in that unit, hit by law changes that cut the maximum interest rates on loans.

The largest U.S. bank will take a $40-million fourth-quarter charge, including costs to close 270 of its 320 branches there and 100 of 800 automated loan machines.

Citigroup will also increase reserves by $375 million as Japanese personal-loan firms face a flood of demands to repay interest charges that courts have deemed illegal.

Citigroup shares fell 48 cents to $54.57.