Citi plans to sell consumer businesses in Brazil, Argentina and Colombia
The businesses, which include retail banking and credit card operations, will be transferred from Citicorp into Citi Holdings and will report financial results as part of Citi Holdings, effective first quarter 2016.
Citi will maintain a strong presence in Brazil, Argentina and Colombia in order to continue serving its many corporate and institutional clients in these markets.
Citi CEO Michael Corbat said, "While our Consumer businesses in Brazil, Argentina and Colombia are of high quality, we have decided to focus our efforts on opportunities with our institutional clients in these countries and throughout the wider region. Citi is committed to Latin America, where we have operated for over a century and built an unmatched network across 23 countries.
"We allocate our resources where they can generate the best possible returns for our shareholders. These actions will further simplify our Global Consumer Bank, allowing us to more effectively deploy resources to where we have the ability to achieve scale within our targeted segments and see the greatest opportunity for growth," Mr. Corbat concluded.
The consumer businesses moving into Citi Holdings include roughly $6 billion in assets and did not have a material impact on Citigroup's net income in 2015.
The new Global Consumer Banking footprint will serve nearly 54 million clients in the United States, Mexico, Asia Pacific, Europe and the Middle East, while further simplifying operations and improving performance. ■