Erste buys Citibank consumer division in Hungary

As expected, Erste Group is going to acquire the consumer business (retail banking and cards business) of Citibank Europe Plc. in Hungary. The transaction is subject to regulatory approvals, which are expected by the end of 2015, portfolio.hu reports.

The transfer of
customer accounts is not expected to occur before the fourth quarter of 2016.
Terms of the transaction were not disclosed, i.e. we have no information either
about the purchase price or the size of Citi’s loan portfolio or clientele, the
website says.

"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," the parties said in a joint statement.