Brussels Citi today announced that it has entered into a definitive agreement to sell its Belgian consumer franchise, Citibank Belgium SA, to Crédit Mutuel Nord Europe (CMNE), subject to customary conditions and regulatory approval.
This share deal will include Citibank’s entire consumer franchise in Belgium, which currently includes more than 700 employees, 198 points of sale, 500,000 customers and a U.S. GAAP Total Assets per September 2011 of U.S.$4.1 billion (or 3.1 billion EUR – Sept. Fx Rate = 0.7406).
Terms of the sale were not disclosed, and the transaction is not expected to be material to Citi's net income. The transaction is expected to close in Q2 2012.
The sale demonstrates Citi’s continued success in reducing the assets and businesses within Citi Holdings in an economically rational manner while working to generate long-term profitability and growth from the core businesses within Citicorp. Citi has reduced assets within Citi Holdings by more than $582 billion since the peak in the first quarter of 2008.
Commitment to Belgium:
Citi launched in Belgium in 1919 and remains committed to serving its corporate and institutional clients in Belgium, which include major companies, financial institutions, public entities, and subsidiaries of foreign multinational companies. Citi’s Institutional Banking and Global Transaction Services franchises will continue to provide these clients best-in-class service and an unparalleled global footprint.
Citi’s Institutional Clients Group and BNP Paribas advised Citi on this transaction.
Citi, the leading global financial services company, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.
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Crédit Mutuel Nord Europe
Crédit Mutuel Nord Europe (CMNE) is the largest bank in the north of France. CMNE focuses on the whole spectrum of retail & corporate banking, insurance and asset management activities, with 300 branches, over 4,000 employees and €12bn of customer loans. As of 2010 it had strong capitalisation levels with a Tier I ratio under Basel II of 18.7%. In Belgium, CMNE is present with BKCP and its 43 branches network.
Certain statements in this release are ‘forward-looking statements’ within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a variety of factors, including but not limited to the precautionary statements included in this release as well as the following factors: the actual consummation and closing of the proposed transaction, the completion of the final analysis of the financial and accounting impact on Citigroup as a result of the proposed transaction and the effective and timely transfer of the applicable customer accounts as a result of the proposed transaction. More information about these factors and other factors that may affect Citigroup's future results is contained in Citigroup's filings with the U.S. Securities and Exchange Commission, including without limitation the “Risk Factors” section of Citigroup’s 2010 Form 10-K. Precautionary statements included in such filings should be read in conjunction with this release.