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Citi Announces Agreement to Sell Consumer Bank in Bahrain to Ahli United Bank B.S.C.
Rhea-AI Impact
(Low)
Rhea-AI Sentiment
(Neutral)
Tags
Rhea-AI Summary
Citi has announced the acquisition of its consumer banking business in Bahrain by Ahli United Bank B.S.C. (AUB). This transaction marks the ninth sale by Citi in the APAC and EMEA regions as part of its strategy refresh. The deal, subject to regulatory approvals, includes retail banking, credit card, and unsecured lending businesses, while institutional clients will continue to be served by Citi. Upon closing, Citi anticipates a small contribution to a $7 billion release of tangible common equity from exiting 13 markets.
Positive
Transaction allows Citi to focus on institutional client services in Bahrain.
Citi's consumer employees will have job offers from AUB, ensuring employee retention.
Exit strategy contributes to a $7 billion release of allocated tangible common equity.
Negative
None.
Citi Continues to Execute on Global Consumer Exits
Transaction Marks Ninth Announced Sale by Citi in APAC/EMEA Regions Since Announcing Strategy Refresh
Citi Continues to Invest in Bahrain and Support Institutional Clients
MANAMA, Bahrain--(BUSINESS WIRE)--
Citi today announced that Ahli United Bank B.S.C. (AUB) has agreed to acquire Citi’s consumer banking business in Bahrain. The transaction, which is subject to regulatory approvals, includes the retail banking, credit card and unsecured lending businesses but excludes Citi’s institutional businesses. Citi remains committed to continuing to serve institutional clients in Bahrain locally, regionally and globally.
As per the agreement, Citi consumer employees and employees supporting the consumer business will be offered employment from AUB upon close of the proposed transaction.
Upon closing, Citi expects the transaction will make a small contribution to the previously announced release of approximately US$7 billion of allocated tangible common equity over time from the exit of its consumer franchises in 13 markets in Asia Pacific and Europe, Middle East and Africa.
“This is a positive outcome for our colleagues and our clients in Bahrain, and our top priority is to manage and support them through a seamless transition to AUB. We are proceeding with the same consideration for our remaining consumer exit markets,” said Titi Cole, CEO of Legacy Franchises at Citi.
Michel Sawaya, Citi Country Officer Bahrain, said, “We are very pleased to announce this transaction with AUB, a leading organization with a strong growth strategy in consumer banking in Bahrain. We are confident AUB will provide excellent opportunities for our customers and employees. For Citi, this transaction will enable additional investment in our strategic focus areas, including our institutional businesses in Bahrain.”
AUB was selected by Citi following a competitive auction process. Prior to the closing of the transaction, there will be no change in the services provided to Citi’s consumer banking and wealth customers in Bahrain. Closing of the proposed transaction, which is subject to customary regulatory conditions, is anticipated by the second half of 2022.
About Citi
Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.
Certain statements in this release are “forward-looking statements” within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. These statements are not guarantees of future results or occurrences. Actual results and capital and other financial condition may differ materially from those included in these statements due to a variety of factors. These factors include, among others, the successful sale of the Bahrain consumer businesses, including within the expected timeframe, macroeconomic and local market conditions, consumer preferences, and the precautionary statements included in this release. These factors also consist of those contained in Citi’s filings with the SEC, including without limitation the “Risk Factors” section of Citi’s 2021 Form 10-K. Any forward-looking statements made by or on behalf of Citi speak only as to the date they are made, and Citi does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.
What did Citi announce regarding its consumer banking business in Bahrain?
Citi announced that Ahli United Bank B.S.C. will acquire its consumer banking business in Bahrain, including retail banking, credit card, and unsecured lending.
What is the significance of Citi's transaction in Bahrain?
This transaction marks the ninth announced sale by Citi as part of its strategy refresh in the APAC and EMEA regions.
What financial impact does the transaction have on Citi?
Citi expects the transaction will contribute to a $7 billion release of allocated tangible common equity over time.
When is the closing of the proposed transaction expected?
The closing of the proposed transaction is anticipated by the second half of 2022, subject to regulatory conditions.
