Citi To Sell Retail Banking Business In Japan To Sumitomo Mitsui Banking

(RTTNews) - U.S. banking giant Citigroup Inc. (C) said Thursday that it agreed to sell its retail banking business in Japan to Sumitomo Mitsui Banking Corp. or SMBC.

The company noted that it will transfer entire retail banking operations of Citibank Japan Ltd., including its Japan-wide network of retail branches and ATMs, to a trust bank subsidiary of SMBC as part of the transaction, together with about 1,600 Citi Japan employees, about 740,000 customer accounts and about 2.5 trillion yen or US$21.0 billion of yen and foreign currency deposits as of November 30, 2014. The financial terms of the transaction are not material to Citi.

The transaction is expected to close in late 2015, subject to regulatory approvals and other customary closing conditions.

Citi noted that the sale represents another step in its strategy of further streamlining its Global Consumer Bank as announced on October 14, 2014.

Citi stated that it continues to pursue the possible sale of its credit card business in Japan, which is conducted through Citi Cards Japan Inc., and the aforementioned transaction does not include the cards business.

Following the sale, Citi will continue to deliver the power of its unrivalled global network to its Japanese and non-Japanese corporate, institutional and governmental clients in Japan.

Citi said it will serve these clients by focusing on its corporate and investment banking, markets and transaction services businesses conducted from Citibank Japan Ltd. and Citigroup Global Markets Japan Inc.

C closed Wednesday's trading at $54.54, up $0.12 or 0.22%.