LONDON--(BUSINESS WIRE)--Citi today signed an agreement with Raiffeisenbank a.s. to sell its consumer banking business in the Czech Republic. The sale is subject to regulatory approvals and includes Citi’s retail banking and cards businesses, consumer banking employees, branches and ATMs in the Czech Republic, which will transfer to Raiffeisenbank upon closing. The transaction is expected to close in Q1 2016, subject to customary closing conditions. The financial terms of the transaction are not material to Citi.
Citi intends to focus on expanding the services it offers to Czech corporations, banks and public sector clients as well as continuing to service its multi-national clients with operations in Czech and global investors.
“Since 1991 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 Czech consumer banking customers and employees. We recognize their contribution to the rich Citi Czech heritage and thank them for their longstanding support and partnership” said Michal Nebeský, Citi Country Officer for the Czech Republic. "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 franchises in the Czech Republic.”
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.
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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.
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