Citi to Continue to Grow its Institutional Clients and Commercial
Banking Franchises
Company Website:
http://www.citigroup.com
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.
Additional information may be found at www.citigroup.com
| Twitter: @Citi | YouTube: www.youtube.com/citi
| Blog: http://blog.citigroup.com
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| 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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150902005545/en/
Contacts:
Contacts:
Media:
Eva Hencz – Budapest
(36) 1 374
5184
or
Adam Castellani – London
(44) 207 986 5608
or
Mark
Costiglio – New York
(212) 559 4114
or
Investors:
Susan
Kendall
(212) 559 2718
or
Fixed Income Investors:
Peter
Kapp
(212) 559 5091
Source: Citi
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