Citigroup, Inc (NYSE: C) announced on Monday that it had signed an agreement to sell its Canadian MasterCard business to Canadian Imperial Bank of Commerce.
The terms of the deal were not disclosed, however, the deal will reduce the amount of assets in Citigroup’s “Citi Holdings” division by about $1.93 billion US.
Since the financial crisis, Citigroup re-organized into two divisions, Citi Financial, which consists of its core businesses, and Citi Holdings, which are companies that it hopes to divest itself of. Citigroup, along with other banks, has been under pressure from regulators to shrink its business and boost its capital levels to avoid a second financial crisis. Citigruop has already sold a number of business units from its Citi Holdings division in the last year.
The deal for its Canadian MasterCard business is not expected to have a material impact on Citigroup, Inc (NYSE: C)’s net income or capital ratios and is expected to close by October 31st.
Citigroup, Inc (NYSE: C) shares traded up $0.05 on Friday, ending at $4.01 for the day.
