Lender Raiffeisen Bank Romania will take over Citibank’s Romanian consumer portfolio, of over EUR 90 million in gross assets, including mostly loans, and EUR 175 million in deposits. The transaction also comprises taking over Citi’s consumer banking staff in Romania. Via the deal, Raiffeisen Bank grew its customer base by 100,000, adding to the existing 2 million customers.
“The quality of the loan portfolio weighed significantly in our decision to close this deal. Since we have compatible business models for the individuals’ segment, we estimate that once the transaction becomes effective, the operational integration will be very smooth”, said Steven van Groningen, President and CEO of Raiffeisen Bank.
For Citibank, “the sale represents the best possible outcome for our customers, staff and shareholders,” said Tibor Pandi, General Manager of Citi Romania. Following the sale, the bank will focus on its corporate segment. “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”, Tibor Pandi added.
Until the transaction becomes effective, in the third quarter of 2013, Citibank’s customers will continue to be served in accordance with their current terms and conditions, according to Raiffeisen Bank.
Raiffeisen posted EUR 88 million in profits in 2012 in Romania, and total assets worth assets were worth EUR 5.31 billion. Total loans stayed at EUR 3.52 billion in 2012.