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Tuesday, August 19, 2014

Citigroup considers sale of Japan retail unit - source, (NYSE: C)

Citigroup Inc is considering the sale of its Japanese retail unit and has approached about 10 banks, a source with direct knowledge of the matter said on Wednesday, as the U.S. banking company struggles to turn around its Japanese operations.Citigroup's move came as Japan's banking industry suffers from weak loan demand and falling interest margins. Despite a recent pickup in lending, deposits still overwhelm loans as businesses and households remain cautious on spending.Citigroup, whose presence in Japan dates back over 100 years, has decided to pull out of the unprofitable retail business as part of cost-cutting measures, said the source, who was not authorised to discuss the matter publicly.Citigroup is preparing to sell the retail operations of Citibank Japan, which has 33 branches and about 3.6 trillion yen ($35 billion) in deposits, the source said. It had approached about 10 financial institutions including Japan's top three lenders and regional banks.

Citigroup Inc. (Citigroup) is a global diversified financial services holding company whose businesses provide 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. Shares of C traded higher by 0.38% or $0.19/share to $49.70. In the past year, the shares have traded as low as $45.18 and as high as $55.28. On average, 15752300 shares of C exchange hands on a given day and today's volume is recorded at 13076034.