Citi Announces Agreement to Sell Consumer Bank in Hungary
September 02 2015 - 4:27AM
Business Wire
Citi to Continue to Grow its Institutional
Clients and Commercial Banking Franchises
Citi (NYSE: C) today signed an agreement with Erste Bank Hungary
Zrt. and its subsidiary Erste Befektetési Zrt. (Erste Investment)
to sell its consumer banking business in Hungary. The sale includes
Citi’s retail banking, consumer loans, cards businesses and the
transfer of consumer banking employees. This transaction is subject
to regulatory approvals, which are expected by the end of 2015.
Transfer of customer accounts is expected to be completed in Q4
2016. The financial terms of the transaction are not material to
Citi.
Citi will remain in Hungary and intends to focus on expanding
the services it offers to Hungarian corporations, financial
institutions and public sector clients. Citi will continue to
service its multi-national clients with operations in Hungary. Citi
also remains committed to operating and expanding its Citi Service
Center located in Budapest, currently serving over 50 countries
worldwide.
“Since 1985 we have proven our commitment to the country and
will continue to grow and invest in our Institutional and
Commercial Banking businesses to better serve our local and global
clients. We believe this transaction is a positive outcome for our
Hungarian consumer banking customers and employees. We recognize
their contribution to the rich heritage of Citi Hungary and thank
them for their longstanding support and partnership” said Jon
Wiggins, acting CEO for Citi Hungary. "This decision is in line
with Citi’s global strategy of focusing our resources on those
sectors where we have a competitive advantage, including our
institutional and commercial banking businesses in Hungary.”
The sale represents yet another step in Citi’s strategy of
winding down Citi Holdings by divesting non-core operating
businesses and assets in an economically rational manner. The sale
also is a part of Citi’s previously announced strategy to
accelerate the transformation of the Global Consumer Bank by
refining its footprint and streamlining operations to 24 markets
where it has the greatest scale and growth potential.
Terms of the transaction were not disclosed. Citi's
Institutional Clients Group advised Citi on this transaction.
###
About Citi
Citi, the leading global bank, has approximately 200 million
customer accounts and does business in more than 160 countries and
jurisdictions. Citi provides consumers, corporations, governments
and institutions with a broad range of financial products and
services, including consumer banking and credit, corporate and
investment banking, securities brokerage, transaction services, and
wealth management.
Additional information may be found at www.citigroup.com |
Twitter: @Citi | YouTube: www.youtube.com/citi | Blog:
http://blog.citigroup.com | Facebook: www.facebook.com/citi |
LinkedIn: www.linkedin.com/company/citi
Certain statements in this release are “forward-looking
statements” within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995. These statements are based on
management’s current expectations and are subject to uncertainty
and changes in circumstances. These statements are not guarantees
of future results or occurrences. Actual results and capital and
other financial condition may differ materially from those included
in these statements due to a variety of factors, including the
precautionary statements included in this release and those
contained in Citigroup’s filings with the U.S. Securities and
Exchange Commission, including without limitation the “Risk
Factors” section of Citigroup’s 2014 Annual Report on Form 10-K.
Any forward-looking statements made by or on behalf of Citigroup
speak only as to the date they are made, and Citigroup does not
undertake to update forward-looking statements to reflect the
impact of circumstances or events that arise after the date the
forward-looking statements were made.
© 2015 Citigroup Inc. Citi, Citi with Arc Design and Citibank
are registered service marks of Citigroup Inc.
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