RBC: Uralsib Bank may buy Citibank’s loan portfolio

The Russian bank Uralsib is considering the possibility of acquiring the retail loan portfolio of Citibank, a subsidiary of the American financial conglomerate Citigroup, reports RBC. The publication notes that Uralsib does not plan to buy the bank itself. Representatives of the organization did not comment. On the eve of Citigroup announced the curtailment of business in Russia.

As experts told RBC, such a deal is possible, despite decree President on the prohibition of transactions with shares and shares of Russian strategic companies for investors from unfriendly countries. According to experts, Uralsib can legally acquire a portfolio of orders, since such a deal does not affect the bank’s ownership stake.

As of February 1 this year, Citibank’s loan portfolio amounted to RUB 188 billion. In terms of capital, he was in 23rd place in the country – 70.7 billion rubles.

According to experts, due to the acquisition of the loan portfolio of the American subsidiary, Uralsib can count on the arrival of more wealthy clients. At the same time, the bank did not fall under Western sanctions and can carry out transactions with foreign currency.

25 August Citigroup announced about winding down the retail business and the Russian SME business, as well as plans to sell off certain loan portfolios. The curtailment of the business will affect about 2.3 thousand employees and 15 departments, including the company’s branches, the costs are estimated at $170 million. In March, the company declaredthat the bank will suffer big losses after the termination of work in Russia. The size of his assets in the country was about $10 billion.

Read more in the publication “Kommersant” “Citi is winding down”.

Lusine Balasyan