The Canadian Imperial Bank of Commerce is acquiring the unit from the investment bank, which is making the sale as part of an ongoing strategy to divest itself of non-core business elements.
Although details of the transaction were not revealed, the deal is in line with Citiâs long-term goal of rebuilding growth and profitability while stripping certain assets, the bank explained.
Vikram Pandit, chief executive officer of Citi, said: âThis transaction demonstrates the continued progress we are making in our efforts to divest non-core assets.
"Our team continues to pursue opportunities to reduce assets in Citi Holdings in a way that will create value for our stakeholders."
He added: âWith this sale behind us, we will continue to focus on growing our Global Banking, Global Transaction Services and Citi Private Bank organizations, leveraging Citi's unique global reach to the benefit of our clients."
The sale, which is subject to approval from regulators, is expected to be completed by the end of October 2010.