28 Oct 2022 16:17

Citibank plans to sell retail loan portfolio to Uralsib

MOSCOW. Oct 28 (Interfax) - Citibank, the Russian subsidiary of Citigroup, is planning to sell its retail loan portfolio to Uralsib , subject to client consent, Citi said in a statement.

The bank has also agreed to sell Uralsib its ruble-denominated credit card portfolio.

The group did not say how big the portfolio was. Skadden, Arps, Slate, Meagher & Flom LLP are acting as legal advisors for the deal.

A spokesperson for the Russian bank told Interfax that the loan portfolio million might be transferred before the end of 2022. "There are plans to transfer the consumer loans by the end of 2022 and credit cards during the first half of 2023. We believe that the resulting portfolio will significantly increase the client base, especially in Moscow and St. Petersburg, and also enhance the bank's loan portfolio," the bank said.

The deal is part of a plan to wind up Citi's operations in Russia.

Citigroup announced in August that it will begin winding down the Russian retail business and work with Russian small and medium enterprises (SME) in the third quarter. The process will affect about 2,300 employees, 15 branches and offices, as well as retail services such as consumer loans, credit cards and deposits, and brokerage and depository services for retail investors.

At the end of the second quarter of 2022, Citi's presence in Russia was estimated at $8.4 billion in financial terms, with the retail and SME business accounting for about $1 billion.

Citi's costs related to the wind-down of these businesses are expected to total about $170 million, primarily over the next 18 months and largely due to expenses on restructuring, termination of contracts with suppliers and other payments associated with this process.

Uralsib was Russia's 22nd biggest bank by assets, according to the Interfax-100 ranking of the country's major banks, at the end of 2021.