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UPDATE:Citigroup Considers Sale Of German Citibank Retail Bkg

Last Update: 5/16/2008 11:23:14 AM

(Adds analyst comment.)

FRANKFURT (Dow Jones)–Citigroup Inc. (C) is evaluating the sale of its German
retail bank Citibank Privatkunden AG & Co. KgaA, a spokesman with the German
Citibank unit said Friday.

“Citi CEO Vikram Pandit recently conducted intensive business reviews of all of
our global businesses to optimize Citi for future growth and we continue to
evaluate opportunities to enhance our operations worldwide,” said Citibank
spokesman Bjoern Korschinowski.

“As part of that process, we are exploring a variety of options for our retail
banking business in Germany,” which, with a return on equity of 49.7%, was the
most profitable in this market in 2007, Korschinowski said. “No decisions have
been made at this time.”

Korschinowski also said the process excludes “our considerable corporate &
investment Banking operations in Germany,” Citigroup Global Markets Deutschland
AG & Co. KGaA.

“We remain committed to our German clients, who we have served for decades, to
executing our growth strategy, and generating shareholder value,” Korschinowski
said.

Citigroup Chief Executive Vikram Pandit said last Friday he expects the company
to shed $400 billion within the next three years, as part of a restructuring
plan. Two-thirds of the divestitures will come from the company’s troubled
consumer banking division.

Two analysts have estimated that Citibank Germany could cost between EUR3 billion
and EUR6 billion.

One estimates Citibank Germany could cost between EUR4 billion and EUR6 billion,
while another estimates it at between EUR3 billion and EUR4.5 billion.

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