Citi sells its Polish consumer division to VeloBank in a strategic move
In a significant move announced mid-2025, Citi Handlowy, the Polish arm of global financial giant Citigroup, has decided to sell its consumer banking business to VeloBank. The deal, expected to close by mid-2026, subject to regulatory approvals and antitrust clearance, is part of a broader strategic retreat by Citi from retail banking in 14 international markets.
The sale of Citi Handlowy's consumer banking segment is aimed at streamlining operations and strengthening the bank's position in institutional banking. By focusing on corporate, government, and large institutional clients, Citi Handlowy hopes to concentrate resources and capabilities on its core business, offering more specialized financial services on a global scale.
The estimated value of the sale for shareholders is approximately 1.1 billion zloty ($292.5 million), while the deal is expected to lead to a modest regulatory capital benefit upon closing for Citi. However, Citi Handlowy has stated that the deal will be financially immaterial to the bank.
VeloBank, the purchaser, is affiliated with Cerberus Capital Management, the European Bank for Reconstruction and Development, and the International Finance Corporation, although no new information has been provided about these affiliations.
Citi's retreat from retail banking in select markets aligns with the bank's broader global strategy to focus on areas where it sees competitive advantages and higher growth potential, such as institutional and corporate banking, investment banking, and capital markets. In December, Citi separated its retail business in Mexico, Banamex, from its institutional operations, with plans for an initial public offering for Banamex this year.
The consumer banking business of Citi Handlowy includes wealth management, micro business banking, credit cards, consumer loans, deposits, and assets under management, consumer clients of the brokerage business, branches, and other consumer-related assets. Poland marks the 10th sale in the series of Citi's retreat from retail banking in international markets.
Citi Handlowy, which has been providing financial solutions to corporations in Poland for 155 years, will continue to invest in its institutional businesses as part of this strategic shift. Ernesto Torres Cantú, Citi's head of international, stated that the transaction will allow Citi to deploy additional resources to its institutionally focused businesses.
The sole remaining international consumer business of Citi is in Mexico. This move by Citi Handlowy to sell its consumer banking business to VeloBank underscores the bank's commitment to focusing on its core institutional business and operating as a global business bank.
The sale of Citi Handlowy's consumer banking segment is aimed at allowing the bank to concentrate resources and capabilities on its core business, offering more specialized financial services on a global scale. This transaction is expected to be financially immaterial to Citi Handlowy but will contribute to strengthening its position in institutional banking.
