How Citigroup Benefits From The Sale of OneMain

While the deal will make Springleaf the single biggest sub-prime lender in the country, Citigroup stands to gain a lot from the disposal of what is its most profitable business in terms of return on assets (RoA). The cash generated from the sale will allow the bank to retire some of its debt over the coming months - in turn bringing in additional savings on interest expense. The deal and the subsequent interest savings should boost Citigroup's pre-tax profit figure for the year by $1 billion. Th...