NEW YORK--(BUSINESS WIRE)--Citi (NYSE:C) today announced that it has reached a definitive agreement to sell its retail banking business in Japan to Sumitomo Mitsui Banking Corporation (hereafter SMBC). The entire retail banking operations of Citibank Japan Ltd., including its Japan-wide network of retail branches and ATMs, will be transferred to a trust bank subsidiary of SMBC as part of the transaction, together with approximately 1,600 Citi Japan employees, about 740,000 customer accounts and approximately JPY2.5 trillion (US$21.0 billion at an exchange rate of 118.15 yen to US$1.00) 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.
The sale represents another step in Citi's strategy of further streamlining its Global Consumer Bank as announced on October 14, 2014. Citi 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 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.
“This is a positive outcome for Citi, as well as for the employees and customers of our retail banking business in Japan. This decision furthers Citi's global strategy of focusing our resources where we feel we have a competitive advantage, which includes our Institutional Clients Group businesses in Japan. Citi has been in Japan since 1902 and it is an important market for Citi,” said Citibank Japan CEO Peter B. Eliot.
Citi's Institutional Clients Group advised Citi on this transaction.
Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.
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Certain statements in this release are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. These statements are not guarantees of future results or occurrences. Actual results and capital and other financial condition may differ materially from those included in these statements due to a variety of factors, including the precautionary statements included in this release and those contained in Citigroup's filings with the U.S. Securities and Exchange Commission, including without limitation the "Risk Factors" section of Citigroup's 2013 Annual Report on Form 10-K. Any forward-looking statements made by or on behalf of Citigroup speak only as to the date they are made, and Citigroup does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.