LONDON--(BUSINESS WIRE)--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.
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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.
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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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