Citigroup Inc. is selling its Japanese retail brokerage Nikko Cordial Securities Inc. for $7.9 billion to Sumitomo Mitsui Financial Group. Said another way, by selling the operation, Citigroup is buying 27 basis points of Tier 1 capital ratio improvement.

Nevermind the $200 million loss Citi is to take on the sale; analysts said the deal looks to be a good one for Citi, which expects to book an extra $2.5 billion of tangible common equity at a crucial time as a result of the transaction.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.