Citi to sell Japan credit card unit to Sumitomo Mitsui Trust Bank

[TOKYO] Citigroup Inc has agreed to sell its credit card unit in Japan to Sumitomo Mitsui Trust Bank, the companies said on Tuesday, as the US bank slims down globally to bolster its profitability.

The price of Citi Cards Japan, which includes the Diners Club brand in Japan, was not disclosed. Local media had reported the deal would be worth around 40 billion yen (S$459 million).

The transaction is expected to close by the end of the year, Citigroup and Sumitomo Mitsui Trust Holdings Inc said in separate statements. Sumitomo Mitsui Trust Bank is a unit of Sumitomo Mitsui Trust Holdings.

In December, Citigroup announced it was selling its Japanese retail banking operations to SMFG unit Sumitomo Mitsui Banking Corp, part of plans to pull out of consumer banking in 11 markets to cut costs.

REUTERS