Under the agreement signed by Raiffeisen Bank Romania and Citibank Romania, Raiffeisen Bank will take over a portfolio consisting of over 100,000 customers, over RON460 million (EUR90 million) in gross assets and over RON770 million (EUR175 million) in deposits.
All Citi consumer banking staff in Romania will be transferred to Raiffeisen, the statement reads.
The transaction, which is subject to customary approvals, is expected to close in the third quarter of 2013.
The terms of the transaction are not public and are not material to either party.
“The fact that Citi’s business model is similar to ours in all segments, both in terms of customer service quality and product offer, mattered in signing the agreement,” said Steven van Groningen, President and CEO of Raiffeisen Bank Romania.
“Furthermore, the quality of the loan portfolio weighed significantly in our decision to close this deal,” added van Groningen, who estimated the operational integration will be “very smooth.”
In his turn, Tibor Pandi, General Manager of Citi Romania, said the sale of the consumer business is “the best possible outcome for our customers, staff and shareholders.”
“Our commitment to Romania will see us continue to grow and invest in our business to better serve our local and global corporate, financial institution, commercial banking and Public Sector clients” Pandi also said.
Citi’s Institutional Clients Group advised Citi on this transaction, while Raiffeisen Bank was advised by Raiffeisen Capital & Investment.