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Citi Brazil to sell off Credicard portfolio to Banco Itau Unibanco

credicardCiti Brazil announced on Tuesday its intent to sell Credicard, the bank’s consumer finance and non-banking credit card business, to Banco Itau Unibanco, pending approval by Brazilian regulators.

Once approved by regulators, the transaction is expected to contribute to a sales gain of approximately $300 million after-tax at closing. The deal includes 96 Credicard locations and $3.26 billion in consumer loan balances, though it does not include corporate cards, Citi and Diners portfolios, Credicard American Airlines cards–aside from Exclusive–or Credicard Platinum.

“Brazil is a very important growth market and is an essential part of Citi’s Latin American footprint and global network. This transaction demonstrates how we are finding ways to optimize our businesses and focus on specific segments in the emerging markets, consistent with our global strategy,” Francisco Aristeguieta, the CEO of Citi Latin America, said. “We have done business in Brazil for 98 years and will continue to grow our institutional and retail consumer banking businesses in the country.”

Business activities will be reflected in the discontinued operations category beginning in the second quarter. Credicard’s American Airlines portfolio will be reassigned under the Citi brand and will continue to be managed by Citi.

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