In a continuing effort to exit international consumer banking Citi inks a final deal to unload its Citi Cards Japan business to Sumitomo Mitsui Trust Bank for an estimated US$350 million. The deal, with began negotiations in December, includes 743,000 customer accounts and an exclusive franchise for Diners Club cards in Japan, according to CardData.
Citi says the sale represents another step in its strategy of further streamlining its Global Consumer business, which was announced on October 14, 2014. Following the sale, Citi says it will continue to deliver the power of its unrivaled global network to its Japanese and non-Japanese corporate, institutional and governmental clients in Japan. Citi will serve these clients by focusing on its corporate and investment banking, markets and transaction services businesses.
Citi has been in Japan since 1902.
Meanwhile, last week Citibank sold its credit card business in Nicaragua to Grupo Financiero Ficohsa (GFF).
The acquisition of Citi assets in Nicaragua is Ficohsa’s second Citi acquisition in Central America. In June 2014, the group acquired 100% of Banco Citibank and Cititarjetas in Honduras.
Citi’s operations in Nicaragua are comprised of US$255 million in total assets, a loan portfolio of US$171 million, US$197 million in deposits and net worth of US$ 46 million.
CardData reports significant declines in fourth quarter (Q4/14) profits across all three regions. The Asia region posted a 32% YOY decline, the LAC region was down 18% YOY and the EMEA region posted an US$18MM loss for Q4/14.
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