New York Citi today announced the closing of the sale of $1.6 billion in managed assets, part of its U.S. retail sales finance portfolios, to GE Capital. The assets were part of Citi Holdings. Terms of the deal, which has received regulatory approval, were not disclosed.
This transaction will reduce assets by $1.6 billion in Citi Holdings, Citi's portfolio of non-core operating businesses and assets, and builds on the progress made to date to reduce assets in an economically rational manner. Citi continues to pursue opportunities within Citi Holdings that create the most value for stakeholders.
"Selling these assets enables us to streamline the strategic operating model, including our bank legal vehicles and operating platforms, for the Retail Partner Cards business," said Bill Johnson, CEO, Retail Partner Cards, Citi. "Going forward, we are better positioned for future growth as we continue to partner with premier brand retailers across a broad spectrum of industries and retailing specialties."
Retail Partner Cards, within Citi Holdings, provides consumer and commercial credit card products and services, including private label credit cards, for national and regional retailers across the U.S. The business services more than 40 million customers and consists of managed assets of approximately $50 billion. Retail partners include The Home Depot, Shell, Macy's, Sears, and ExxonMobil, among others.
Citi will provide portfolio servicing on an interim basis until the first quarter of 2011.
Citi, the leading global financial services company, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. 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.
Certain statements in this release, including without limitation the anticipated assets of Citi Holdings by year-end, the execution of the proposed transactions and the expected financial and accounting impact of the transactions on Citi, 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 the continued successful execution of Citi's strategy with respect to Citi Holdings, the actual completion of the proposed transactions, the receipt of regulatory approvals and required shareholder approvals, and the final analysis of the financial and accounting of the transactions. For more information about these factors and other factors 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. Such factors should be read in conjunction with this release.