Citi Says It Is Still Committed to Japanese Brokerage

Citigroup said on Monday it is still committed to its Japanese brokerage and asset management units, denying media reports that the U.S. bank is actively looking to unload a major part of its Japanese business.

Colin Robertson

Citigroup , which reported an $8.3 billion quarterly loss on Friday, said it plans to split into two units and shed troubled assets. 

Both its Japanese brokerage, Nikko Cordial Securities, and investment firm Nikko Asset Management will be bundled into a group of "non-core businesses", the bank said.

A spokesman for Citigroup in Tokyo said the bank was not considering such a move at the moment, however.

"Citi remains committed to maximizing the value of (Nikko Cordial) over the next few years," he said, adding that it was not considering a sale of Nikko Asset either.

Media outlets have speculated that Mitsubishi UFJ Financial Group, Japan's biggest bank, or second-ranked Mizuho Financial Group might be interested in acquiring some of Citigroup's business in the world's second-largest economy.

A spokesman for Mitsubishi UFJ Financial Group said it was not in talks with Citigroup about such a purchase.

A spokesman for Mizuho declined to comment.

Citigroup had been on an aggressive push to expand in recent years, buying up Nikko Cordial, Japan's third-largest brokerage, and setting its sights on millions of affluent Japanese. 

That expansion was stalled by the credit crisis, raising questions about the firm's ability to become a major player in Japanese financial services.

Copyright 2009 Reuters. Click for restrictions.