AUB buys Citi’s Consumer Banking Business, retains 175 employees
TDT | Manama
The Daily Tribune – www.newsofbahrain.com
Ahli United Bank has announced successfully completing the acquisition of Citi’s Bahrain consumer business.
The transaction includes Citi’s retail banking, credit card and unsecured lending businesses, as well as the transfer of approximately 175 related staff including full-time employees and contractors, but excludes Citi’s institutional businesses.
The sales involve a transition period, where Citi will continue to provide services to the customers on behalf of AUB.
During this period, customers will be able to use their Citi products and services as they normally would.
The transaction, which was first announced on April 4, is expected to result in a regulatory capital benefit to Citi of approximately US$40 million.
Suvrat Saigal, Deputy Group Chief Executive Officer – Retail Banking at AUB, said, “As part of our growth and transformation journey, we are extremely pleased with the acquisition of Citi’s Consumer Business.
As a market leader in providing digital services, Wealth Management and Payment products, the inclusion of Citi’s products and services to AUB’s already market-leading proposition will result in an unmatched offering to our customers.
This transaction delivers value to all stakeholders – for existing AUB customers through access to an expanded range of products; for Citi’s customers through access to AUB’s broad product range and market-leading distribution; and for staff through enhanced career opportunities.”
The sale of Citi’s Bahrain consumer business is among the 14 consumer markets in Asia, Europe, the Middle East and Mexico that Citi previously announced it would exit as part of the firm’s strategy refresh.
To date, sales agreements have been signed in nine markets and have closed in five markets including Australia, the Philippines, Thailand and Malaysia, in addition to Bahrain.
Citi is also in the process of winding down consumer banking in South Korea and Russia.
“We are pleased with the smooth transfer of our consumer business to AUB and thank our former colleagues for their continued excellence in serving clients throughout the transition process.
We wish them continued success in the future,” said Titi Cole, CEO, Legacy Franchises.
Michel Sawaya, Bahrain Citi Country Officer, said: “This represents a positive outcome for Citi, our clients and our colleagues.
We remain committed to serving our institutional clients in Bahrain to meet all their banking needs.”