Citigroup Arm Enters Deal to Exit Consumer Banking Business in Poland

Core Viewpoint - Citigroup Inc. is strategically exiting its consumer banking business in Poland through the sale of Citi Handlowy to VeloBank S.A, aligning with its broader focus on core operations and higher-return segments [1][5][9] Transaction Details - The agreement includes the demerger of various consumer banking operations such as wealth management, credit cards, consumer loans, and deposits, along with the transition of employees and branches to VeloBank [2][3] - The transaction will not affect Citi Handlowy's institutional banking operations, which will continue to be developed [3][4] - Expected to close by mid-2026, the transaction is subject to regulatory approvals and is anticipated to provide a modest regulatory capital benefit, although it is financially immaterial to Citigroup [3][4] Strategic Context - Citigroup has been winding down its consumer banking operations globally, having previously announced plans to exit consumer banking in 14 markets across Asia and EMEA [6][9] - The company has also completed the separation of its institutional banking operations in Mexico and sold its China-based consumer wealth portfolio to HSBC [7][8] - These strategic moves aim to free up capital for investment in higher-return segments, with expectations of achieving a compounded annual growth rate of 4-5% in revenues by 2026 and driving $2-2.5 billion in annualized run-rate savings [9][10] Market Performance - Over the past year, Citigroup shares have increased by 21.4%, compared to a 29.6% growth in the industry [11]