Citigroup has signed an agreement to sell its consumer banking business in Hungary to Erste Bank and its subsidiary Erste Investment.
The sale is part of the American bank’s strategy to shed non-core operating businesses.
The transaction includes Citi’s retail banking, consumer loans, cards businesses. As part of the transaction, Citi’s consumer banking employees will also be transferred.
Citi Hungary acting CEO Jon Wiggins said: "We believe this transaction is a positive outcome for our Hungarian consumer banking customers and employees.
"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 businesses in Hungary."
The deal is expected to secure regulatory approvals by the end of this year. The customer accounts are expected to be transferred by the fourth quarter of 2016.
Citi said it will remain in Hungary, and will focus on expanding services to Hungarian corporations, financial institutions and public sector clients.