Customers to continue to receive high quality service while benefitting from Erste’s universal banking offering.
Citi continues to strengthen its services for Corporate and Commercial banking clients and expand its Budapest Citi Service Center
September 2, 2015
Budapest — Citibank Europe plc today signed an agreement with Erste Bank Hungary Zrt. and its subsidiary Erste Befektetési Zrt. (Erste Investment Limited) to sell its consumer banking business in Hungary. The sale includes Citibank’s retail banking and investment business, consumer loans and cards businesses, the CitiBusiness microenterprise accounts and the transfer of consumer banking employees. The transaction is subject to regulatory approvals, which are expected by the end of 2015. The transfer of customer accounts is not expected to occur before the fourth quarter of 2016.
Citi will remain in Hungary and continue its commitment to the country, and intends to focus on expanding and growing the services it offers to Hungarian corporations, financial institutions, multinational clients with operations in Hungary and public sector clients. Citi also remains committed to expand its Citi Service Center located in Budapest, currently servicing Citi franchises operating in more than 50 countries worldwide. This decision is in line with Citi’s global strategy of focusing its resources on those sectors where it has a competitive advantage, including its institutional and commercial banking businesses in Hungary.
Citibank believes Erste is well placed to continue to provide the service and high standards to which Citibank’s customers have become accustomed. In the transition period, which is not expected to end before the fourth quarter of 2016, both Citibank and Erste will focus on aligning the two institutions’ operations to ensure customers receive smooth and seamless transition and only benefit from the transaction. In the meantime Citibank will operate its consumer banking business normally and communicate intensively and effectively to its customers.
Jon Wiggins, acting CEO for Citibank Europe plc Hungarian Branch Office said, “Since 1985 we have proven our commitment to Hungary 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 Citibank Hungary and thank them for their longstanding support and partnership, which we will ensure is maintained during the transition period. Our customers are accustomed to receiving remarkable customer experiences and quality products and service. 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. ”
Radován Jelasity, CEO for Erste Bank Hungary Zrt. said, “As we have continuously emphasized Erste is fully committed to Hungary, ready to play an active role in the consolidation of the banking sector and eager to remain a crucial pillar of the Hungarian banking sector and economy. The transaction will result in Erste having the second largest retail customer portfolio in Hungary. In addition to size, Erste will have a unique position in the Hungarian financial market given the combination of the best and most valuable assets of the two companies – Erste’s universal banking services and Citibank’s market-leading high service standards. We respect Citibank’s competencies in serving their customers at the highest standards and we are determined to match that quality. We would like to welcome Citibank’s customers to the 196 years old Erste Group by satisfying all their financial needs via our universal banking services. Erste Group started as a savings bank, so we have a wide expertise in wealth management, savings and investments. Modern everyday banking services and our wide branch network will also offer new possibilities and benefits to our future clients - with Erste a new dimension of finances awaits.”
Until the business is transferred by the fourth quarter of 2016, Citibank will continue to operate normally and customers will continue to be serviced by Citibank. All Citibank customer touch points (branches, Citiphone, online- and mobile banking) continue to be available and Citibank customers are requested to contact Citibank with any questions or requests. Business will continue as usual, including acquisition of new customers. Citibank will continue to serve its customers banking needs as they are accustomed to; and all customers continue to benefit from Citibank’s wealth management and investment expertise, valuable reward programs and remarkable customer experience. Currently no actions are required by Citibank customers. All customers will be informed ahead of time about important developments or action needed.
Terms of the transaction were not disclosed.
Back to Press Room