Raiffeisen Bank S. A. in Romania and Citibank Romania (Citi) signed an agreement in which Raiffeisen Bank will purchase Citi’s Romanian consumer portfolio., according to a press release. The transaction, subject to customary approvals, is expected to be effective in the third quarter of 2013.Under the agreement, Raiffeisen Bank will take over a portfolio consisting of over 100,000 customers, over RON 460 M (over EUR 90M) in gross assets, over RON 770 M in deposits (over EUR 175 M), as of December 31, 2012, as well as all Citi consumer banking staff in Romania.
“The fact that Citi’s business model is similar to ours in all segments, both in terms of customer service quality and product offer, mattered in signing the agreement. Furthermore, the quality of the loan portfolio weighed significantly in our decision to close this deal. Since we have compatible business models for the individuals’ segment, we estimate that once the transaction becomes effective, the operational integration will be very smooth”, said Steven van Groningen, President and CEO of Raiffeisen Bank. “The sale represents the best possible outcome for our customers, staff and shareholders.
Our commitment to Romania will see us continue to grow and invest in our business to better serve our local and global corporate, financial institution, commercial banking and Public Sector clients” said Tibor Pandi, General Manager of Citi Romania.