American multinational banking firm Citi has agreed to divest its consumer banking business in the Czech Republic to Raiffeisenbank for an undisclosed amount.
The sale forms a part of Citi’s strategy of winding down Citi Holdings by divesting non-core operating businesses and assets in an economically rational manner.
It is also in line with Citi’s previously announced strategy to accelerate the transformation of the Global Consumer Bank by streamlining operations to 24 markets with growth potential.
The deal covers the sale of Citi’s retail banking and cards businesses, consumer banking employees, branches and ATMs in the Czech Republic.
Subject to regulatory approvals, the sale is expected to be completed in Q1 2016.
The sale comes as Citi intends to focus on expanding its services to Czech corporations, banks and public sector clients as well as continuing to serve its multi-national clients with operations in Czech and global investors.
Citi Czech Republic country officer Michal Nebeský said: "We believe this transaction is a positive outcome for our Czech consumer banking customers and employees. We recognize their contribution to the rich Citi Czech heritage and thank them for their longstanding support and partnership.
"This decision is in line with Citi’s global strategy of focusing our resources on those sectors where we have a competitive advantage, including our institutional and commercial banking franchises in the Czech Republic."
Raiffeisenbank, a member of Austrian Raiffeisen Group, provides banking services to private and corporate clientele in the Czech Republic.
Last year, Citi announced plans to sell its retail banking arm in Japan.