Citigroup”™s consumer finance arm CitiFinancial has announced plans to reorganize and rename its North American business.
CitiFinancial will divide its U.S. business into segments CitiFinancial Servicing and CitiFinancial”™s Full Service Branches.
The company attributed the division to consumer demand and a need for expanded lending services.
Approximately 300-plus CitiFinancial branch units are expected to be closed.
Citi Holdings in its first quarter earnings report for 2010 had a net loss in income of $887 million.
In the Hudson Valley, CitiFinancial operates branches in Mount Vernon, Nanuet, Wappingers Falls, Fishkill, Kingston, Middletown, and Monroe.
CitiFinancial operates more than 1,800 branches in the U.S., Canada and Puerto Rico.
CitiFinancial is a part of Citi Holdings, which includes businesses and assets that are non-core to Citi, the company said.
Citigroup”™s net income for the first quarter was $4.4 billion.
Citigroup revenues for the first quarter were $25.4 billion; regional consumer banking revenues were $8.4 billion.
Vikram Pandit, chief executive officer of Citigroup, said in the first quarter earnings report, “We are proud of our first quarter results but remain cautious about the environment, given the uncertain economic recovery and high unemployment in the U.S. Realistically, we do not expect our performance to follow an invariable trend-line upward. Longer-term, however, the prospects for Citi are clear and bright.”
Under the new segments, full-service branches will focus on loan originations while CitiFinancial Servicing will be more specialized in nature, with loan modifications and restructures among services offered.
Mary McDowell, chief executive officer of CitiFinancial said, in a statement, “Through CitiFinancial Servicing, we”™ll be better equipped to help customers stay current on their loans and achieve their financial goals in today”™s challenging economic environment.”
