The agreement means that anyone who had a mortgage, loan or deposit with Citi will soon have that transferred over to NAB.
As part of the transaction, 800 Citi staff will also be moved over to NAB.
Citi announced its plans to sell its consumer banking business in April this year saying it simply didn’t have the scale to compete in the Australian market.
“The proposed acquisition of the Citigroup Consumer Business brings scale and deep expertise in unsecured lending, particularly credit cards, which continue to be an important way for customers to make payments and manage their cashflows,” he said.
“The cards and payments sector is rapidly evolving and access to a greater share of payments and transaction data will help drive product and service innovation across our personal banking business and deliver market leading customer experiences.”
“As this transaction shows, we are moving forward with urgency as we refresh our strategy and execute the decisions we have already made as part of that effort,” Fraser said.
“We are focusing our resources on businesses where we have scale and competitive advantages in order to deliver growth and improved returns over time.”
Citi will continue to serve high-net-wealth clients through global hubs and will also continue to serve institutional clients in Australia.
"We are very pleased with the economics of the transaction and we will use the capital generated to invest in our strategic priorities, as well as to continue to return capital to our shareholders," Fraser said.