Erste Bank will buy the Hungarian retail business of Citibank, while Citibank will continue to focus on corporate and institutional clients. Citibank will pass on its retail deposit, investment, personal loans, credit card and micro-enterprise financing (CitiBusiness) segments. Citibank Europe reached an agreement with Erste Bank Hungary as well as its subsidiary Erste Befektetesi. The deal is not expected to conclude before the fourth quarter of 2016 and is pending regulatory approval, which could be received around the end of 2015. Transfer of customer accounts is not expected to occur before the fourth quarter of 2016. Acting CEO of Citibank Europe’s Hungarian branch Jon Wiggins said the most suitable partner for the needs of their clients had been found. Citibank remains committed to Hungary and plans to further develop its service centre in Budapest, the lender said. With the transaction, Erste’s retail portfolio will become the second-biggest in Hungary, said chairman-CEO Radovan Jelasity.
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