Citigroup has announced plans to narrow its portfolio following its heavy exposure to the US sub-prime crisis. Citigroup was the worst affected bank in America by the mortgage crisis, and is to sell $400 billion of assets over the course of the next two to three years. That figure represents roughly 20 per cent of the company’s estimated $2.2 trillion dollars of assets.
The cuts are to be made within its consumer banking and securities banking sectors, with 63 per cent of the $400 billion cut to be made in the consumer banking unit and 34 per cent of the reduction to be made in the securities banking sector. Citigroup made the announcement via slides on its website from a presentation it had made to investors and analysts last week.
During the next two to three years, Citigroup has targeted net revenue growth of 10 per cent for its major operations, with the greatest growth forecast in its transaction services business. The bank’s global wealth management unit, global credit card business, consumer banking business and securities and banking business are the other sectors in which major growth has been targeted.
Citigroup to Make Cuts to Banking Portfolio
Citigroup to Make Cuts to Banking Portfolio
Wed, 14 May 2008
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