C » Topics » Sale of Citigroup's German Retail Banking Operations

This excerpt taken from the C 10-Q filed Nov 6, 2009.

Sale of Citigroup's German Retail Banking Operations

        On December 5, 2008, Citigroup sold its German retail banking operations to Credit Mutuel for Euro 5.2 billion in cash plus the German retail bank's operating net earnings accrued in 2008 through the closing. The sale resulted in an after-tax gain of approximately $3.9 billion including the after-tax gain on the foreign currency hedge of $383 million recognized during the fourth quarter of 2008.

        The sale did not include the corporate and investment banking business or the Germany-based European data center. Results for all of the German retail banking businesses sold are reported as Discontinued operations for all periods presented.

        Summarized financial information for Discontinued operations, including cash flows, related to the sale of the German retail banking operations is as follows:

 
  Three Months
Ended Sept. 30,
  Nine Months
Ended Sept. 30,
 
In millions of dollars   2009   2008   2009   2008  

Total revenues, net of interest expense

  $ 25   $ 847   $ 61   $ 2,001  
                   

Income (loss) from discontinued operations

  $ 18   $ 503   $ (21 ) $ 851  

Gain (loss) on sale(1)

            (41 )    

Provision (benefit) for income taxes and noncontrolling interest, net of taxes

    6     (101 )   (42 )   22  
                   

Income (loss) from discontinued operations, net of taxes

  $ 12   $ 604   $ (20 ) $ 829  
                   

(1)
2009 YTD activity represents transactions related to a transitional service agreement between Citigroup and Credit Mutuel as well as adjustments against the gain on sale for the final settlement which occurred in April 2009.

 
  Nine Months
Ended Sept. 30,
 
In millions of dollars   2009   2008  

Cash flows from operating activities

  $ 6   $ (1,252 )

Cash flows from investing activities

    1     1,833  

Cash flows from financing activities

    (7 )   (760 )
           

Net cash provided by (used in) discontinued operations

  $   $ (179 )
           
This excerpt taken from the C 10-Q filed Aug 7, 2009.

Sale of Citigroup's German Retail Banking Operations

        On December 5, 2008, Citigroup sold its German retail banking operations to Credit Mutuel for Euro 5.2 billion in cash plus the German retail bank's operating net earnings accrued in 2008 through the closing. The sale resulted in an after-tax gain of approximately $3.9 billion including the after-tax gain on the foreign currency hedge of $383 million recognized during the fourth quarter of 2008.

        The sale did not include the corporate and investment banking business or the Germany-based European data center. Results for all of the German retail banking businesses sold, are reported as Discontinued operations for all periods presented.

        Summarized financial information for Discontinued operations, including cash flows, related to the sale of the German retail banking operations is as follows:

 
  Three Months
Ended June 30,
  Six Months
Ended June 30,
 
In millions of dollars   2009   2008   2009   2008  

Total revenues, net of interest expense

  $ 30   $ 575   $ 36   $ 1,154  
                   

Income (loss) from discontinued operations

  $ (20 ) $ 189   $ (39 ) $ 348  

Gain (loss) on sale(1)

            (41 )    

Provision (benefit) for income taxes and noncontrolling interest, net of taxes

    (41 )   67     (48 )   123  
                   

Income (loss) from discontinued operations, net of taxes

  $ 21   $ 122   $ (32 ) $ 225  
                   

(1)
First half of 2009 activity represents transactions related to a transitional service agreement between Citigroup and Credit Mutuel as well as adjustments against the gain on sale for the final settlement which occurred in April 2009.
 
  Six Months
Ended June 30,
 
In millions of dollars   2009   2008  

Cash flows from operating activities

  $ 8   $ (2,116 )

Cash flows from investing activities

        432  

Cash flows from financing activities

    (8 )   1,498  
           

Net cash provided by (used in) discontinued operations

  $   $ (186 )
           
This excerpt taken from the C 10-Q filed May 11, 2009.

Sale of Citigroup's German Retail Banking Operations

        On December 5, 2008, Citigroup sold its German retail banking operations to Credit Mutuel for Euro 5.2 billion in cash plus the German retail bank's operating net earnings accrued in 2008 through the closing. The sale resulted in an after-tax gain of approximately $3.9 billion including the after-tax gain on the foreign currency hedge of $383 million recognized during the fourth quarter of 2008.

        The sale did not include the corporate and investment banking business or the Germany-based European data center.

        Results for all of the German retail banking businesses sold, are reported as Discontinued operations for all periods presented.

        Summarized financial information for Discontinued operations, including cash flows, related to the sale of the German retail banking operations is as follows:

 
  Three Months Ended March 31,  
In millions of dollars   2009   2008  

Total revenues, net of interest expense

  $ 6   $ 579  
           

Income (loss) from discontinued operations

  $ (19 ) $ 159  

Gain on sale(1)

    (41 )    

Provision for income taxes and minority interest, net of taxes

        56  
           

Income (loss) from discontinued operations, net of taxes

  $ (60 ) $ 103  
           

(1)
First quarter 2009 activity represents transactions related to a transitional service agreement between Citigroup and Credit Mutuel as well as adjustments against the gain on sale for the final settlement which occurred in April 2009.
 
  Three Months
Ended March 31,
 
In millions of dollars   2009   2008  

Cash flows from operating activities

  $ 19   $ (818 )

Cash flows from investing activities

    (10 )   (975 )

Cash flows from financing activities

    (9 )   1,627  
           

Net cash provided by (used in) discontinued operations

  $   $ (166 )
           
These excerpts taken from the C 10-K filed Feb 27, 2009.

Sale of Citigroup’s German Retail Banking Operations

On December 5, 2008, Citigroup sold its German retail banking operations to Credit Mutuel for Euro 5.2 billion in cash. The German retail bank’s operating net earnings accrued in 2008 through the closing. The sale resulted in an after-tax gain of approximately $3.9 billion, including the after-tax gain on the foreign currency hedge of $383 million recognized during the fourth quarter of 2008, and was recorded in Discontinued Operations. In addition, a foreign currency hedge gain of $211 million was recorded in the third quarter of 2008.

The sale does not include the corporate and investment banking business or the Germany-based European data center.

See Note 3 on page 136 for further discussion regarding this sale.

Sale of Citigroup’s German Retail Banking Operations

On December 5, 2008, Citigroup sold its German retail banking operations to Credit Mutuel for Euro 5.2 billion in cash. The German retail bank’s operating net earnings accrued in 2008 through the closing. The sale resulted in an after-tax gain of approximately $3.9 billion, including the after-tax gain on the foreign currency hedge of $383 million recognized during the fourth quarter of 2008, and was recorded in Discontinued Operations. In addition, a foreign currency hedge gain of $211 million was recorded in the third quarter of 2008.

The sale does not include the corporate and investment banking business or the Germany-based European data center.

See Note 3 on page 136 for further discussion regarding this sale.

Sale of Citigroup’s German Retail Banking Operations

On December 5, 2008, Citigroup sold its German retail banking operations to Credit Mutuel for Euro 5.2 billion, in cash plus the German retail bank’s operating net earnings accrued in 2008 through the closing. The sale resulted in an after-tax gain of approximately $3.9 billion including the after-tax gain on the foreign currency hedge of $383 million recognized during the fourth quarter of 2008.

The sale does not include the corporate and investment banking business or the Germany-based European data center.

The German retail banking operations had total assets and total liabilities as of November 30, 2008, of $15.6 billion and $11.8 billion, respectively.

Results for all of the German retail banking businesses sold, as well as the net gain recognized in 2008 from this sale, are reported as Discontinued operations for all periods presented.

Summarized financial information for Discontinued operations, including cash flows, related to the sale of the German retail banking operations is as follows:

 

In millions of dollars   2008     2007      2006  

Total revenues, net of interest expense

  $ 6,592     $ 2,212      $ 2,126  

Income from discontinued operations

  $ 1,438     $ 652      $ 837  

Gain on sale

    3,695               

Provision for income taxes and minority interest, net of taxes

    426       214        266  

Income from discontinued operations, net of taxes

  $ 4,707     $ 438      $ 571  
In millions of dollars   2008     2007      2006  

Cash flows from operating activities

  $ (4,719 )   $ 2,227      $ 2,246  

Cash flows from investing activities

    18,547       (1,906 )      (3,316 )

Cash flows from financing activities

    (14,226 )     (213 )      1,147  

Net cash provided by (used in) discontinued operations

  $ (398 )   $ 108      $ 77  

Sale of Citigroup’s German Retail Banking Operations

On December 5, 2008, Citigroup sold its German retail banking operations to Credit Mutuel for Euro 5.2 billion, in cash plus the German retail bank’s operating net earnings accrued in 2008 through the closing. The sale resulted in an after-tax gain of approximately $3.9 billion including the after-tax gain on the foreign currency hedge of $383 million recognized during the fourth quarter of 2008.

The sale does not include the corporate and investment banking business or the Germany-based European data center.

The German retail banking operations had total assets and total liabilities as of November 30, 2008, of $15.6 billion and $11.8 billion, respectively.

Results for all of the German retail banking businesses sold, as well as the net gain recognized in 2008 from this sale, are reported as Discontinued operations for all periods presented.

Summarized financial information for Discontinued operations, including cash flows, related to the sale of the German retail banking operations is as follows:

 

In millions of dollars   2008     2007      2006  

Total revenues, net of interest expense

  $ 6,592     $ 2,212      $ 2,126  

Income from discontinued operations

  $ 1,438     $ 652      $ 837  

Gain on sale

    3,695               

Provision for income taxes and minority interest, net of taxes

    426       214        266  

Income from discontinued operations, net of taxes

  $ 4,707     $ 438      $ 571  
In millions of dollars   2008     2007      2006  

Cash flows from operating activities

  $ (4,719 )   $ 2,227      $ 2,246  

Cash flows from investing activities

    18,547       (1,906 )      (3,316 )

Cash flows from financing activities

    (14,226 )     (213 )      1,147  

Net cash provided by (used in) discontinued operations

  $ (398 )   $ 108      $ 77  
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