AP News

Citi sells Brazilian card and finance business


NEW YORK (AP) — Citigroup Inc. said Tuesday that its Brazil unit has agreed to sell Credicard, its non-banking credit card and consumer finance business, to lender Banco Itau Unibanco.

Financial details of the transaction were not disclosed, though Citi anticipates that the deal, subject to approval by Brazilian regulators, will generate an after-tax gain of about $300 million, or 10 cents per share, at closing.

The transaction includes 96 Credicard stores and roughly $3.26 billion in consumer loan balances, as of Dec. 31.

The deal also includes portfolios of Credicard-branded cards and a personal loan portfolio.

Among the cards excluded from the transaction: corporate cards, the Citi and Diners branded portfolios, Credicard American Airlines cards, which will be migrated to the Citi brand, and most of the Credicard Platinum portfolio.

Citibank's retail branch network will not be affected by this transaction, the company said.

Shares of Citigroup ended regular trading up $1.17, or 2.4 percent, at $50.09. The stock is up 27 percent this year.


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