Citigroup Inc., which continues to reduce assets outside of its main businesses, has sold $1.6 billion in sales finance portfolios from its retail partner card business to GE Capital, the companies announced.
Terms of the deal were not disclosed.
The assets were from the partner cards unit in Citi Holdings, the bank's repository for businesses that it is trying to sell or wind down.
Retail Partner Cards provides consumer and commercial credit card products and services for more than 40 million customers and consisting of assets of about $50 billion. The retail customer lists includes The Home Depot, Shell, Macy's, Sears, and ExxonMobil.
In the deal, GE Capital, the finance arm of General Electric Co. said it was acquiring about 36 retail portfolios.
The deal comes less than a month after Citi sold Student Loan Corp. to Discover Financial Services. Discover is paying $600 million for that business, which is 80 percent owned by Citi and will result in a $500 million charge this quarter for the bank.
In June, Citigroup said it was selling $3.2 billion of auto loans to Banco Santander, and that it was selling about $2 billion of Canadian credit card loans to Canadian Imperial Bank of Commerce.
These moves will help reduce the assets of Citi Holdings, which had about $465 billion at the end of the second quarter, compared with $827 billion at its peak in the first quarter of 2008.
Citi said it plans to continue working on the retail partner card portfolios it is selling to GE Capital on an interim basis until the first quarter of 2011.
GE Capital said the deal would provide consumer financing programs in main segments of its business, including home furnishings, flooring, consumer electronics and heating, ventilation and air conditioning.
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