Citi Successfully Completes Sale of German Retail Banking Operation to Credit Mutuel-CIC.Citi Receives All-Cash Consideration of Euro 5.2 Billion DouSSELDORF, Germany & NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Citi today announced the successful completion of the sale of Citibank Privatkunden AG & Co. KGaA, its German retail banking operation, and certain of its affiliates, to Credit Mutuel-CIC, a leading French banking group. Credit Mutuel-CIC paid an all-cash consideration of Euro 5.2 billion (US$6.6 billion), which includes an estimate of 2008 earnings through closing. The transaction results in an estimated after-tax gain of approximately US$4 billion, including the impact of a benefit of a currency hedge Currency hedge Applies mainly to international equities. Hedging technique to guard against foreign exchange fluctuations (i.e., short Euro l00 mm when holding a long position of Euro l00 mm in stocks). put in place post-signing. Citi's Tier 1 capital Tier 1 Capital A term used to describe the capital adequacy of a bank. Tier I capital is core capital, this includes equity capital and disclosed reserves. Notes: Equity capital includes instruments that can't be redeemed at the option of the holder. ratio for the third quarter ended September 30, 2008, on a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis for the close of the transaction is expected to be higher by approximately 60 basis points. "The transaction is another strategic step that significantly strengthens Citi's key capital ratios and allows us to reallocate Verb 1. reallocate - allocate, distribute, or apportion anew; "Congressional seats are reapportioned on the basis of census data" reapportion allocate, apportion - distribute according to a plan or set apart for a special purpose; "I am allocating a loaf of capital to the best growth opportunities for the overall franchise. We are especially pleased the franchise and employees remain in good hands to serve our retail banking customers in the future. I want to thank all the employees of Citibank Germany for their hard work building a great business and for staying focused during the transaction process," said Citi CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Vikram Pandit Vikram Pandit received an MS degree in 1977 and a BS degree in electrical engineering in 1976 from Columbia. He also earned a PhD in Finance from Columbia University in 1986. . "Germany remains an important market for Citi's institutional clients business and our commitment to drive our clients' financial success is unwavering." The operations sold to Credit Mutuel-CIC have assets of US$15.6 billion and deposits of US$11.8 billion at current foreign exchange rates. It had 3.25 million customers, 6,800 employees and operates 340 locations, including branches and advisory centers, throughout Germany. It has been agreed that Credit Mutuel-CIC will operate the acquired business under the Citibank brand until it undergoes a rebranding in 2010. Citi's Institutional Clients Group advised Citi on this transaction. Citi's ongoing German businesses include its full service Corporate and Investment Bank and its European data center, the biggest Citi data center outside the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Citi, the leading global financial services company, has some 200 million customer accounts and does business in more than 100 countries, providing 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, and wealth management. Citi's major brand names include Citibank, CitiFinancial, Primerica, Smith Barney, Banamex and Nikko. Additional information may be found at www.citigroup.com or www.citi.com. |
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