Citi to sell Japanese unit

Citigroup is poised to sell NikkoCiti Trust and Banking Corporation, its trust bank in Japan, as part of a global move to raise funds through asset disposals and restructuring measures. The US bank, which is expected to start receiving bids for its trust bank business this week, could raise an estimated Y40bn ($420m) through the sale, which comes amid intense pressure on Citi to cut costs after issuing preference shares to the US government for much-needed capital. Citi last week received $20bn from the US government, following an earlier injection of $25bn to shore up its capital base. The US government also guaranteed $306bn in Citi’s domestic assets including commercial and residential mortgages. NikkoCiti Trust and Banking is a relatively small business, with just over Y6,000bn in trust accounts and 136 employees, but is likely to draw rival Japanese trust banks eager to expand their client base. In the first half to September, NikkoCiti Trust suffered a 69% drop in net profits to Y152m on ordinary income of Y1.66bn.

Copyright The Financial Times Limited 2019. All rights reserved. You may share using our article tools. Please don't cut articles from FT.com and redistribute by email or post to the web.

Read next:

Read next:

FT Alpha Tweets