Citi’s time in Australia’s consumer banking landscape is coming to an end soon after NAB acquired its assets under a mega deal.

Citi said there will be no immediate changes in the way it serves its customers, and that more details will be given to them in the coming months.

Subject to the length of the approval by regulators, the deal is expected to be concluded by March of next year.

The deal is reportedly worth $ 1.2 billion, with NAB saying it was paying Citigroup’s money for the assets, plus $ 250 million as a sweetener.

In July, the NAB announced to the Australian Securities Exchange that it was an interested buyer.

Citi’s Australian consumer assets total approximately $ 12.2 billion and include $ 7.9 billion in residential mortgages, $ 9 billion in deposits and $ 4.3 billion in unsecured loans.

Citi also employs 800 people in Australia, who will be absorbed by NAB once the transaction is finalized.

NAB chief executive Ross McEwan said Citi has built strong partnerships with many brands, which will help support the growth of the Big Four lenders going forward.

“The proposed acquisition of Citigroup’s consumer business brings breadth and deep expertise in unsecured loans, particularly credit cards, which remain an important way for customers to make payments and manage their cash flow, ”McEwan said.

“The cards and payments industry is changing rapidly, and access to more payment and transaction data will help drive product and service innovation across all of our personal banking businesses and to deliver market-leading customer experiences. ”

Citi is a credit card provider for a number of Australian brands including Bank of Queensland, Coles, Kogan, PayPal, QANTAS, Suncorp and Virgin Money.

Just last week, Citi announced its new buy now, payment platform later called Spot, with no news as to how the sale will affect the business.

However, Citi’s head of cards and loans, Choong Yu Lum, told last week, “Typically, in transactions like these, products will migrate to the new owner after the sale. finished.

Citi chief executive Marc Luet said the sale to NAB was a positive outcome for the bank, its customers and clients.

“The sale agreement reinforces Citi’s global strategy of focusing its resources on businesses capable of generating stronger growth, increasing scale and improving returns, which includes our client group business. institutions in Australia, ”said Mr. Luet.

“Citi has been in Australia for almost a century and remains an important growth market for the bank.

Citi announced in April that it would be pulling out of Australia’s consumer banking, intending to focus solely on investment banking.

Citi’s Securities Services business has more than $ 23 trillion in assets with a network spanning 64 markets, and is ranked third in Australia by assets in custody for local investors.

Earlier this year, regulators approved NAB’s acquisition of neobank 86,400.

Photo by Mikel Parera on Unsplash

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