Egypt-based Commercial International Bank (CIB) will acquire Citigroup’s retail business in the country on undisclosed terms.
This is a part of Citigroup’s efforts to move out of less profitable businesses in emerging-markets and its previously announced strategy to speed up the transformation of the Global Consumer Bank by refining its footprint and streamlining operations in 24 markets where it has a great scale and growth potential.
The completion of the deal would see the transfer of around 900 full-time consumer banking and contract employees, eight Citi branches and ATM network in Egypt to CIB.
Citi Country Officer for Egypt Nadir Shaikh said: "We believe this transaction is a positive outcome for our Egyptian consumer banking customers and employees. We recognize their contribution to the rich Citi Egypt heritage and thank them for their longstanding support and partnership.
"This decision is in line with Citi’s global strategy of focussing our resources on those sectors where we have a competitive advantage, including our institutional franchise in Egypt."
The group had announced last year that it intends to pull out of consumer banking in 11 countries including Japan and Egypt to bring down high costs.
CIB chairman and managing director Hisham Ezz Al Arab said: "Among the main attractions of the deal was the high quality portfolio and excellent skill set of the staff.
"As Citi is a globally renowned institution known for the excellence of its staff, with a culture very similar to that of CIB which fosters performance and attracts the best talent, we anticipate that the integration of Citi’s staff into the CIB family will be seamless and add significant value to our clients and shareholders."
Image: Citigroup had announced last year that it intends to pull out of consumer banking in 11 countries including Japan and Egypt. Photo: courtesy of Paulscf.