Citigroup (C) Agrees to Sell Consumer Business in Brazil

October 10, 2016 7:52 AM EDT

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Citi (NYSE: C) announced that it has reached a definitive agreement to sell its consumer banking business in Brazil to Itaú Unibanco, subject to regulatory approvals. Citigroup does not expect the financial terms of the transaction to be material to its earnings.

The sale constitutes approximately US$2.8 billion in assets for Citi in Brazil and includes credit cards, personal loans and deposit accounts, as well as Citi Brazil’s retail brokerage business. Citi’s consumer banking operations in Brazil will continue to operate in the ordinary course through the transition to Itaú Unibanco. Upon the conclusion of the transaction, Citi will continue serving clients of its corporate and investment bank, commercial and private bank businesses in the country.

“Brazil is a strategic market for Citi and is an essential part of our footprint and global network,” said Jane Fraser, Citi Latin America CEO. “We have been in Brazil for more than 100 years and we will continue to grow our market leading franchise serving our institutional and private bank clients, leveraging our global presence and generating better returns on our assets and capital for our shareholders.”

Over more than a century, Citi has delivered the power of its unrivalled global network to local, regional and multinational clients in Brazil. The country continues to provide immensely attractive business opportunities for Citi and the bank remains committed to maintaining and growing its longstanding presence in Brazil.

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