To bring long-term profitability and growth
In an effort to continue its focus on core operations, Citigroup has sold its interest in three North American partner credit card portfolios, representing about $1.3 billion in managed assets – reported NASDAQ.
According to the company, the move is in line with its strategy to consolidate or sell businesses in its Citi Holdings segment, while working to generate long-term profitability and growth from Citicorp.
Until the acquirer takes over, Citigroup will continue to service the portfolios through the first half of 2009, added the news source.
The US government is the bank’s largest shareholder, holding approximately 34% stake.
The credit card portfolios were part of Citi Holdings. Terms of the deals were not yet disclosed.