Citibank, Largest in U.S., Pulling Out of South Africa

Citibank, the biggest U.S. banking concern, today announced it is withdrawing from South Africa by selling its subsidiary in the racially divided nation.

The New York-based banking giant said it had agreed to sell the subsidiary to the First National Bank of Southern Africa Ltd., a former unit of Barclays Bank of Britain, which pulled out of South Africa in November. The sale was expected to be completed by the end of this month, Citibank said. The sale was valued at about $64.5 million at current exchange rates.

Citibank said in a statement that it felt compelled to withdraw because “current constraints on Citicorp have made it increasingly difficult to meet the needs of its South African clients in manner they have a right to expect.”