Consultancy firm Clifford Chance counsels Citibank on the recent sale of its consumer banking operations.
Citi Annual Rounds Off Asia-Wide Exit from Consumer Banking, Offloads Polish Subsidiary to VeloBank
In an official announcement made at the end of May, global legal firm Clifford Chance advised on the sale of Citibank Europe Plc's Polish subsidiary, Bank Handlowy w Warszawie SA (Citi Handlowy), to domestic bank VeloBank. The transaction, reputedly the final step in Citi's previously declared strategic exit from consumer banking operations across 14 global markets, involves the demerger of Citi Handlowy's consumer banking business to VeloBank.
Key consumer assets such as micro business banking, wealth management, credit cards, deposits, and assets under management, as well as personal loans, will be transferred to VeloBank. Additionally, related employees and branches will be incorporated into the new ownership. However, Citi Handlowy's institutional banking business remains unaffected and will continue to operate independently.
There are expectations for the deal to close by mid-2026, subject to regulatory approvals, antitrust clearance, and usual conditions precedent. The sale is projected to be worth around 1.1 billion zloty (approximately $292.5 million).
VeloBank, a Poland-based universal bank, holds ownership from funds affiliated with Cerberus Capital Management, the European Bank for Reconstruction and Development, and the International Finance Corporation (part of the World Bank Group). The transaction enables Citi to focus resources on institutional clients while providing VeloBank with an opportunity to invest further in the consumer banking market in Poland.
Ernesto Torres Cantú, Citi's head of international, praised the transaction's significance and the continued commitment to Poland's economic growth and institutional clients. Regarding the dedicated employees and customers, Cantú expressed gratitude for their service and expressed confidence in VeloBank's ability to carry on the valuable franchise.
The transaction is part of Citi's broader strategic refresh to part ways with consumer banking markets across the globe, except for Mexico, where preparations for an initial public offering (IPO) of Grupo Financiero Banamex are ongoing.
The sale of Citi Handlowy to VeloBank signifies a strategic step in Citi's exit from consumer banking operations, particularly in Poland, which is part of a broader industry-wide shift in the finance sector. With the transaction, VeloBank will invest further in the Polish consumer banking market, potentially strengthening its business position.
