Citigroup to buy Brazilian brokerage firm

The New York-based bank would not disclose how much it is paying for the firm, which is called Intra S.A. Corretora de Cambio e Valores. Citigroup said the firm is one of Brazil's top 10 independent brokerage firms, and manages more than 15,000 active client accounts.

The acquisition comes as Citigroup--currently the largest U.S. bank by assets--plans to shrink its $2.2 trillion in "non-core" assets by about a fifth over the next few years. The bank has shed brands such as CitiCapital and Diners Club, and is moving to sell its retail banking business in Germany. Raising cash is a primary goal at Citigroup, as it struggles to return to profitability after two straight quarterly losses stemming from bad bets on risky debt.

But the company appears to be set on maintaining and growing its presence in Brazil, despite selling shares of Redecard SA, a company that signs up merchants in Brazil for MasterCard Inc. Citigroup has more than 120 consumer banking branches in Brazil, more than 400,000 client accounts and about 7,000 employees.

"This transaction underscores Citi's commitment to providing a full range of financial services and growing our business in Brazil," said Gustavo Marin, CEO of Citi Brazil. "The purchase comes amid rapid expansion of Brazil's capital markets and increased appetite for financial activities by individuals."