The sales reduce non-core assets in Citi Holdings by approximately $31bn and combined with other divestitures in the quarter are expected to bring Citi Holdings assets to less than 20% of Citi’s total balance sheet as of the end of the fourth quarter 2010.
As part of the transactions, Citibank, N.A. purchased approximately $8.7bn of assets from SLC and will explore opportunities to reduce these assets over time.
The transaction is expected to add 1.3 million customers to Sallie Mae’s customer base.
Sallie Mae vice chairman and CEO Albert Lord said Sallie Mae is pleased to welcome its new customers and to bring them Sallie Mae’s first-class customer care, college saving, and online banking offerings to help them achieve their education and financial goals.
Citi Holdings said it will continue to pursue economically rational divestiture opportunities that are in the best interest of shareholders.
