US Citigroup has agreed to sell its business with retail banking in Hungary Austrian Erste Group Bank. The move is part of efforts by the third-largest US bank by size of assets to part with non-key activities and businesses, writes Reuters.

What is sold

The sale includes retail banking, consumer lending and card business of Citi, as well as the transfer of employees engaged in consumer banking, said the US financial institution on Wednesday. By Citi does not disclose details regarding the size of the retail portfolio in the country and its customer base. Not reported and the financial details of the transaction, but the US bank stated that the sale will not have a significant financial effect. The transaction is expected to be finalized by the end of the year and the transfer of customer accounts to be completed by the fourth quarter of 2016

“As we have repeatedly emphasized, Erste is fully devoted to Hungary ready to play an active role in the consolidation of the banking sector and eager to remain a key pillar of the Hungarian banking sector and economy,” said CEO of Erste Bank Hungary Radovan Jelasic. In his words, after the acquisition of the retail business of Citi Erste will have the second largest customer portfolio in retail banking in Hungary. “In addition to the size Erste will have a unique position in the Hungarian financial market, given the combination of the best and most valuable assets of the two companies – the universal banking services of Erste and leading market high standards of services to Citi” , says the manager.