Citigroup Sells Citi Trust to JTC for $80 Million
Citigroup which is one of the world's largest financial organizations has agreed to sell its global fiduciary and trust administration business. They have sold Citi Trust to JTC for $80 million. Citi Trust manages more than $70 billion in assets for around 2,000 ultra wealthy clients. Most of these clients are from New York, Delaware, Singapore and Switzerland.
This sale is part of Citigroup's aim to simplify its operations. Citigroup's CEO Jane Fraser has been focused on improving the company's efficiency. Citigroup has recently sold off parts of its business that do not align with its new plan. For example they sold a part of its overseas retail banking operations and shutdown their municipal securities business. These steps are meant to cut expenses and improve the bank's operations.
For JTC this is an important deal. The company is trying to expand in the United States and this deal will help them do so. JTC's takeover of Citi Trust will result in hiring about 420 workers in eight cities across the United States. These employees will improve JTC's capacity to provide trust and asset management services to rich clients.
JTC expects financial benefits from the deal. The company expects to see an important increase in profitability beginning in 2025. With even larger gains in 2026. This is important since trust and fiduciary services are specialized areas that can bring in revenue.
