Citigroup 'eyeing CitiFinancial sale'

7 January 2011

Citigroup is currently sounding out potential buyers for its CitiFinancial arm, which it is looking to sell as part of its ongoing attempts to cut itself loose from its recent past, it has been claimed.

According to a report in the Financial Times, the bank has so far declined to make any official comment, but sources with knowledge of the situation claim CitiFinancial is viewed by its parent as a hurdle to becoming a diversified "financial supermarket".

Private equity groups are expected to be among the front runners when the bidding gets underway and analysts predict CitiFinancial could be worth as much as $1 billion, although Citi may have to fund some of the handover.

The division was hit particularly hard during the recent recession, as much of its lower-income client base defaulted on mortgages and the home and personal loans market struggled.

Earlier this week, Citigroup chief executive Vikram Pandit was cited in a case brought by an Indian businessman who claimed employees at a bank near New Delhi defrauded him and others.

By Asim Shah

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development