 Citigroup is aiming to expand consumer lending |
US banking giant Citigroup is buying ABN Amro's mortgage arm, to boost its consumer lending business. The acquisition, for an undisclosed sum, includes assets of $9bn (�4.5bn) and a mortgage portfolio of $224bn.
The deal, which Citigroup said would add 1.5 million servicing customers to its mortgage business, is set to be completed by the end of March.
Last week, Citigroup reported a 26% drop in quarterly net profits to $5.13bn (�2.6bn).
The move to acquire ABN Amro Mortgage Group, which provides residential mortgages in the US, will enable Citigroup to move from fifth place to fourth in the mortgage servicing market, the firm said.
"We will be able to provide AMN Amro Mortgage Group customers with an expanded suite of products while increasing our distribution channels in new and existing markets, " said Carl Levinson, chief executive officer of Citigroup's consumer lending arm.
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