Citi today signed an agreement with Banco Popular to sell its consumer banking business in Spain. The sale, which is subject to regulatory and other customary approvals, is targeted to close in the third quarter of 2014.
The sale includes approximately $2 billion in GAAP assets, $3.2 billion in assets under management, 1.2 million customer accounts, $2 billion in loans and $2.8 billion in deposits. Approximately 950 consumer banking employees, 45 Citi branches and the ATM network in Spain will transfer to Banco Popular.
"This decision furthers Citi's global strategy of focussing our resources where we feel we have a competitive advantage, which includes our Institutional Clients Group businesses in Spain"
Citi intends to focus on expanding the services it offers to Spanish corporations, private bank and public sector clients as well as continuing to service its multi-national clients with operations in Spain.
"Since 1919 we have proven our commitment to the country and will continue to grow and invest in our business to better serve our local and global clients. We believe this transaction benefits our Spain consumer customers and employees. We recognize their contribution to the rich Citi Spain heritage and thank them for their longstanding support and partnership" said Bill Van Dyke, CEO of Citi Spain. "This decision furthers Citi's global strategy of focussing our resources where we feel we have a competitive advantage, which includes our Institutional Clients Group businesses in Spain"
The sale represents another step in Citi's strategy of winding down Citi Holdings by divesting non-core operating businesses and assets portfolios in an economically rational manner.
Citi's Institutional Clients Group advised Citi on this transaction.