Citigroup Inc. (NYSE: C)
June 14, 2010
Citi Sells Canadian MasterCard Business
Toronto – Citi today announced that it has signed a definitive agreement to sell its Canadian MasterCard business to the Canadian Imperial Bank of Commerce.
Terms of the sale were not disclosed. The sale will reduce Citi's assets in Citi Holdings by approximately $2 billion (Cdn) and is not expected to have a material impact on Citi's net income or capital ratios. The transaction is expected to close by October 31, 2010, and is subject to regulatory approvals and usual closing conditions for such sales.
"This transaction demonstrates the continued progress we are making in our efforts to divest non-core assets," said Vikram Pandit, Chief Executive Officer of Citi. "Our team continues to pursue opportunities to reduce assets in Citi Holdings in a way that will create value for our stakeholders."
"Citi remains committed to delivering on its global strategy in Canada which includes a focus on the growth of our core businesses," Mr. Pandit added. "With this sale behind us, we will continue to focus on growing our Global Banking, Global Transaction Services and Citi Private Bank organizations, leveraging Citi's unique global reach to the benefit of our clients."
The sale of this business is consistent with Citi's strategy to reduce the assets and businesses within Citi Holdings in an economically rational manner while working to generate long-term profitability and growth from Citicorp, which comprises its core franchise.
Citi
Citi, the leading global financial services company, has approximately 200 million customer accounts and does business in more than 140 countries. Through Citicorp and Citi Holdings, Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management. Additional information may be found at www.citigroup.com or www.citi.com.
Statements regarding the asset, net income and/or capital ratio impact of the transaction, anticipated timing of the closing of the transaction, as well as the continued pursuit of opportunities within Citi Holdings, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a variety of factors, including completion of the analysis of the impact of the transaction to Citi and the continued successful execution of Citi's strategy with respect to Citi Holdings. For a discussion of additional risks and uncertainties that may affect Citi's future results, see Citi's periodic reports filed with the U.S. Securities and Exchange Commission and available on www.sec.gov or www.citigroup.com.