Citigroup sells $1.3 billion in credit card assets from 3 card portfolios

Citi sells $1.3 billion in credit card assets

NEW YORK — Citigroup Inc. said Monday that it sold $1.3 billion in credit card assets as the bank reorganizes itself in the wake of government bailouts.

The New York-based bank said it sold its entire ownership interest in three North American partner credit card portfolios representing about $1.3 billion in managed assets.

Terms of the deals and the acquirer weren’t disclosed.

The portfolios were part of Citi Holdings, one of the company’s units that it split off earlier in the year. That unit holds the holds the company’s riskier assets and tougher-to-manage ventures, while Citicorp is focused on traditional banking around the world.

“The sale of these card portfolios is consistent with Citi’s strategy to optimize the assets and businesses within Citi Holdings while working to generate long-term profitability and growth from Citicorp, which comprises its core franchise,” the bank said in a statement.

Citi will continue to service the card portfolios through the first half of 2010, when the acquirer will take on those responsibilities.

Citigroup has received $45 billion in federal bailout funds since last October. A portion of that money was recently converted into a 34 percent ownership stake for the government.

Shares of Citigroup lost 22 cents, or 4.1 percent, to $5.01 in afternoon trading.