American banking giant Citigroup has agreed to sell its consumer banking operations in Hungary to Austria’s Erste Group Bank.
The sale includes Citibank’s retail banking and investment operations, consumer loans and cards operations, the CitiBusiness microenterprise accounts along with transfer of consumer banking employees.
The deal is expected to receive regulator nod by this year end, with the transfer of customer accounts likely to occur by the fourth quarter of next year.
Commenting on the deal, Citibank Europe plc Hungarian Branch Office acting CEO Jon Wiggins said: "We are transferring a demanding and financially sophisticated customer base that is open to innovative banking solutions. We have a big challenge ahead, but we believe we have found the right partner to fulfill Citibank customers’ expectations.
"We are committed to ensure great outcomes for customers and employees. Until the migration takes place, which is not expected to occur before the fourth quarter of 2016, Citibank continues to run its consumer business in a business as usual mode. "
Meanwhile, Citi said intends to remain in Hungary and concentrate on expanding the services it provides to Hungarian corporations, financial institutions, multinational clients as well as public sector clients.
In addition, it also intends to expand its Citi Service Center in Budapest, which services Citi franchises operating in over 50 countries across the globe.