For Immediate Release
Citigroup Inc. (NYSE: C)
June 1, 2010
CitiFinancial Reorganizes its US Franchise, Announces Plans to Unveil New Brand Name
Baltimore, MD - CitiFinancial, the consumer finance arm of Citigroup, today unveiled plans to reorganize its North American business to better serve its customers and announced plans to re-name its franchise. As part of the plan, CitiFinancial is separating its US business into two segments: CitiFinancial's Full Service Branches and CitiFinancial Servicing.
Each segment will leverage the local, community based approach that has long been the foundation of CitiFinancial's unique business model. CitiFinancial will retain a presence in each of the 48 states it serves today. The strategy is expected to enable CitiFinancial to expand lending in line with consumer demand and preserve its ability to help future borrowers.
The Full Service Branches will continue to focus on originations and servicing of Personal, Refinance, and Home Equity loans through a streamlined branch network that provides the breadth of service CitiFinancial customers have come to expect. CitiFinancial Servicing will focus on providing specialized service to customers who would benefit from expanded support including loan modifications or restructurings. The CitiFinancial Servicing model will include larger offices with extended hours of operation and expanded management support and will be located in the communities they currently serve.
Vikram Pandit, Chief Executive Officer of Citi, said, "CitiFinancial is an important business and a great franchise with a long history of keeping credit flowing in America. We believe this segmentation will allow the community-based lender to better serve its customers across the United States."
Mary McDowell, Chief Executive Officer of CitiFinancial, said, "This reorganization will enable CitiFinancial to continue lending to US consumers while better serving its customers in need. In addition, through CitiFinancial Servicing, we'll be better equipped to help customers stay current on their loans and achieve their financial goals in today's challenging economic environment."
CitiFinancial also announced its intention to re-name its business after the segmentation is complete. The name will embrace CitiFinancial's commitment to its customers and reflect the strength of its franchise. The new brand name is expected to be unveiled by the end of this year.
CitiFinancial is part of Citi Holdings, formed in 2009, which includes businesses and assets that are non-core to Citi. Citi remains focused on tightly managing risks and losses within Citi Holdings, while reducing assets in an economically rational manner. Citi will continue to pursue divestiture and asset reduction opportunities in a way that is in the best interest of all of stakeholders, with the combined benefits of simplifying the organization and allowing Citi to allocate capital to fund its longer-term strategic businesses.
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CitiFinancial is the premier community lender in North America. With more than 1,800 locations across the US, Canada, and Puerto Rico, CitiFinancial has been serving communities since 1912. Additional information may be found at www.citifinancial.com.
Citi, the leading global financial services company, has approximately 200 million customer accounts and does business in more than 140 countries. Through Citicorp and Citi Holdings, Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management. Additional information may be found at www.citigroup.com or www.citi.com.
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