“The decision is in line with the global strategy, Citi to focus our resources on those sectors where we have a competitive advantage, including institutional and our corporate banking in Hungary,” said John Wiggins, who perform the functions of CEO of Citi’s Hungary.
Already in the middle of June, Reuters reported that Erste Group is set to acquire a portfolio in Citi’s retail banking in Hungary. Then Agency sources said the potential deal would increase the existing operations of Erste around 10%. According to the website, Citi bank’s presence on the market of retail banking in Hungary since 1995, there are 10 local branches, all in Budapest. Since 2009, the Hungarian subsidiary of Citi operira as a branch of the Irish-based Citibank Europe, notes Reuters. Last published by the Hungarian Central Bank data show that at the end of 2013 the total assets of Citibank in the country 943.1 billion. Forints (3 billion. Euros at current exchange rate).
In recent years, the US financial group narrowed its international activities, withdraw from retail banking and a number of markets, including Spain, Pakistan and Uruguay. In October 2014 was it announced that Citi will suspend its activities in retail banking in 11 countries, including Hungary and has long developed market in Japan. The list fall and retail activities in countries like the Czech Republic, Egypt, Peru, Costa Rica and South Korea. According to the observations of the FT from 2012 the bank has shrunk global presence in the retail segment by almost half – to 24 countries.