CitiFinancial’s loan delinquency edges up-report

Aug 24 (BestGrowthStock) – CitiFinancial’s loan delinquency rate,
which measures the trend of overdue loans, was 0.25 percentage
points more than executives had expected, Bloomberg reported,
citing a person briefed on the matter.

CitiFinancial is a consumer finance unit of Citigroup Inc
(C.N: ) that the bank has overhauled in an effort to cut costs and
make it more attractive to potential buyers [ID:nN01104497].

The bank’s North American consumer finance business, which
includes CitiFinancial, had $15.4 billion in personal loans at
the end of June. A 0.25 percent increase in overdue loans at
CitiFinancial translates to as much as $38.5 million, the agency
said.

Citigroup’s effort to streamline its North American consumer
finance unit caused overdue loans to rise more than expected
last month as the bank moved 750,000 customer accounts to new
locations, the agency said.

Citi had expected that the disruptions in its operations
would lead to more missed payments as 330 branches were closed
and about 180 were converted into “servicing centers” for
troubled loans, the person told the agency.

The rise in delinquencies was disclosed in a briefing for
employees last week by CitiFinancial Chief Executive Mary
McDowell, the person told the agency.

CitiFinancial spokesman Mark Rodgers declined to comment to
Bloomberg on the total dollar amount of delinquencies.

CitiFinancial could not immediately be reached for comment
by Reuters outside regular U.S. business hours.

(Reporting by Sakthi Prasad in Bangalore; Editing by Erica
Billingham)

CitiFinancial’s loan delinquency edges up-report