RBC: Uralsib is interested in buying Citibank retail loans

Uralsib Bank became interested in the loan portfolio of the Russian division of the American financial global corporation Citigroup, Citibank, about this informed RBC with reference to two sources in the financial market. It is clarified that Uralsib is considering purchasing only the retail loan portfolio, and not the entire bank, one of them emphasized.

A representative of Citibank declined to comment, Citigroup and Uralsib did not promptly respond to the publication.

“Citibank’s retail clients are presumably wealthier than the average Uralsib client, so the buyer could count on an increase in the number of affluent clients through the deal. Another thing is that clients themselves will decide whether to stay in the bank or not,” Olga Ulyanova, an independent expert, told the publication. She also noted that the bank “has something to offer to former clients of Citibank,” since Uralsib is not under the sanctions of Western countries and retains the ability to make foreign currency transfers abroad and other foreign exchange transactions.

The day before, on August 25, Citigroup announced its intention to completely stop serving retail and corporate clients from the segment of small and medium-sized businesses in Russia. The Group also did not rule out the sale of loan portfolios. The process of curtailing the business will begin in the third quarter of this year. It will affect about 2,300 employees from 15 departments, including company branches, as well as retail services such as consumer loans, credit cards, deposits, brokerage and custody services for individuals. The process will take place in accordance with the requirements of regulators and obligations to customers, partners and employees.

Back in April 2021, Citigroup announced plans to curtail its retail business in Russia and 13 other countries. Then Citibank was also interested in retail Alfa Bank“Tinkoff“, VTBbut the deal never took place. After the start of a special military operation on the territory of Ukraine, Citigroup, like many foreign banks, announced a likely withdrawal from Russia and the closure of not only the retail direction, but also the business of the commercial bank department. In addition, the company announced the reduction of operations and presence in Russia, including the attraction of new customers was stopped. In early July, the Financial Times reported that the group was negotiating the sale of part of its business in Russia with several Russian companies, including Expobank and Reso-Garantiya insurance company.

Subscribe on Vedomosti on Telegram and stay up to date with the main economic and business news.