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Citi sells retail bank to NAB for $1.2 billion

·2-min read
Multiple Citibank ATMs in a row and a man walking past an NAB branch.
NAB will also take on 800 Citi staff when the transaction closes next year (Source: Getty)

NAB will acquire Citi Group’s consumer banking business in a deal worth around $1.2 billion.

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.

NAB CEO Ross McEwan said the proposed acquisition supported the bank’s ambitions to grow its personal banking business.

“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.”

Citi CEO Jane Fraser said it was a positive outcome for the bank’s clients, colleagues and for Citi Group.

“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.

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