Citigroup Talks Selling $400B in Assets Over the Next Few Years
In an effort to become more efficient, the largest US bank, Citigroup, stated today that its goal is to slim down and shed $400 billion of assets over the next two to three years.
Hit hard by the subprime mortgage meltdown and ensuing turmoil, Citi said it has about $500 billion of "legacy assets." It said it expects to reduce this amount to less than $100 billion within two to three years, according to the company's website.
Citi also said it is targeting annual net revenue growth of 10 percent from core operations. This includes increases of 7 percent from credit card operations, 8 percent from consumer banking, 9 percent from both securities and banking, and from wealth management, and 14 percent from transaction services.
The bank's newly installed chief executive, Vikram Pandit, and other executives will give a four-hour presentation to investors and analysts on Friday.
Although Citi has said previously it plans to shed assets to boost its capital position, the magnitude of the sales worries analysts and is likely to prompt fresh speculation of a break-up of the Wall Street giant.
Published on May 9, 2008
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