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The Russian arm of American banking major Citigroup has reached an agreement to sell its retail loan portfolio to Uralsib.
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Citi is also planning to sell its rouble-denominated credit card portfolio to the Russian commercial bank.
The Wall Street bank did not disclose the size of the portfolio up for sale, which is part of the deal to reduce exposure to Russia.
Uralsib told Interfax that the portfolio transfer could complete 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 was quoted by the news agency as saying.
In August this year, Citi announced its intentions to wind down Russian retail and commercial banking operations.
“No employees or branches are expected to transfer as a result of these transactions,” Citi said in a statement.
The move will impact some 2,300 Citi employees, 15 branches and offices, along with retail services such as consumer loans, credit cards and deposits, and brokerage and depository services for retail investors.
At the end of Q2 2022, Citi’s Russian exposure stood at $8.4bn, including $1bn from the retail and SME banking business. Due to the closure, Citi anticipates around $170m in charges over the next 18 months.
