Citigroup is reportedly planning to divest 50 retail bank branches in California to reduce its physical footprint and streamline operations.
Located in rural areas from Sacramento to north of Los Angeles, the branches to be put up for sale manage deposits worth $3bn, and could fetch $100m for the company, reported Bloomberg citing three people involved in the process.
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Sources further report that the US financial group aims to retain its Los Angeles, San Francisco and San Diego branches.
As per the data released by the US Federal Deposit Insurance Corp, Citigroup had 384 offices in California, managing approximately $48bn in deposits as of 30 June 2013.
During the company’s first-quarter earnings call, Citigroup chief financial officer John Gerspach said, "We continue to rationalize our branch footprint in North America by reducing the number and size of our branches while concentrating our presence in major urban areas and enhancing our digital channel."
In December 2013, Citi reached an agreement with BB&T Corp to sell 21 branches in Texas, which includes Citibank’s retail branches in Austin, Bryan-College Station and San Antonio markets, comprising $1.2bn in deposits and $134m in loans.
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