American banking giant Wells Fargo is reportedly exploring the sale of its corporate-trust arm as well as its $10bn student-loan portfolio.
The sale of its corporate-trust unit can bring the bank more than $1bn, Bloomberg reported citing people familiar with the matter.
Meanwhile, the lender is also considering finding a buyer to take over its student-loan book.
The process of selling its corporate-trust business is currently ongoing. The San Francisco-based lender is handling the divestment by itself, the report added.
Wells Fargo’s corporate-trust business offers trust and agency services in connection with public and private debt securities, to its clients.
The unit is part of the commercial banking division, which caters to businesses that have recorded over $5m in annual sales.
The bank, which is looking for a potential buyer for the student-loan portfolio, already informed its customers about its intent to exit this segment.
Wells Fargo CEO Charlie Scharf has been reviewing the company’s businesses and developing turnaround strategies since his appointment in October last year.
He is preparing to lay out his vision for the scandal-plagued bank and has pledged to focus on key businesses by setting up a simpler structure.
Earlier this month, while speaking with analysts, he said that the company will “continue to exit some things which are not core to the US banking franchise,”.
Additionally, last week, Wells Fargo was also looking to sell its $607bn asset management business. The divestment is expected to yield more than $3bn for the bank.