Citigroup has said it will consolidate its Japanese banking and brokerage operations into one holding company as it seeks to unify its operations in the world’s second-largest economy and tap the country’s vast household savings.

Nikko Citi Holdings will be formed through the merger of Nikko Cordial, which became a 100 per cent subsidiary of Citi in January, and Citigroup Japan Holdings, the group said. Nikko Cordial’s debt will be assumed by the new holding company.