Citigroup to sell Egg bank

Egg up for sale?

Citigroup is selling internet bank Egg as part of the US financial group's plan to shed billions of dollars in unwanted assets.

Originally created by the Prudential, Egg was sold to Citi in 2007 for UK£575 million when the group looked to break the UK market.

However, the global recession changed things, and with Citigroup hit hard the group is looking to get rid of any non-core businesses in order to cut their losses. In 2008, after huge losses due to the recession, 18 percent of Citigroup was seized by the US government to stop it collapsing.

A golden egg?

At the time of its acquisition, Egg had two million customers and its sale is expected to attract interest from UK and international groups, such as Spain's Santander, Tesco and Metro Bank although for the lower price of UK£500 million.

At its launch, Egg was a pioneer in online banking, a service that most banks now offer as standard.

When asked about the selling of the bank, Citi stated that, "We do not comment on speculation or rumour, but it is already public knowledge that Egg is part of Citi Holdings. Citi's strategy is to reduce the assets and businesses within Citi Holdings, its portfolio of non-core operating businesses and assets, in an economically rational manner."

Due to the US government owning a share of Citigroup, there has been a lot of pressure on the company. The group has already sold more than US$360 billion worth of assets in Citi Holdings, but is hoping to get rid of another US$460 billion worth.

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