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Citigroup's traditional banking businesses improved but could not offset a fourth-quarter revenue slump in investment banking, which Chief Executive Vikram Pandit has relied on to help revive the bank.
January 17 -
Citigroup Inc. appears to have abandoned its plan to sell its consumer lending unit until the economy improves and it can fetch a better price for it, according to Fitch Ratings Inc.
January 12
Citigroup Inc. may be
Since 2009, the third-largest bank by assets has
"I really don't see OneMain being a candidate for movement back to Citicorp," he said on a conference call, referring to what the bank calls its main unit.
"OneMain Financial really is focused on a customer segment that isn't part of Citicorp's strategy," he added.
The business, which Gerspach said includes more than $30 billion of assets, offers storefront installment loans that customers use for things like medical bills or home repairs, in lieu of credit card or home equity loans. The people who take out these loans tend to be lower-income, or to have lower credit scores, than the wealthy, international consumers that Citigroup is mainly courting these days.
The bank's talks with a group of prospective buyers
"It's a nationwide business, so if you're looking to sell it — unless you want to break it up into small regional pieces — we're selling one national business, and it's a business of some size," he told reporters during the call to discuss Citigroup's fourth-quarter earnings.
"It becomes a matter of the ability to fund the acquisition as well," he added. "You have to have the right buyer and the right terms. The biggest hurdle right now is really just one of funding."
Citigroup
"We can see how retail-partner cards would fit the strategy going forward of Citicorp," he said. "It would be really difficult to see a scenario where we would look at OneMain Financial and say it really fits the ongoing strategy of Citi."
