Citi likely to sell Hungarian retail business to Erste Group

Citigroup is close to a deal to sell its Hungarian retail banking business to Austrian lender Erste Group, according to a Reuters report.

Citing sources familiar with the matter, Reuters reported that the decision had already been taken.

The deal, which is expected to be announced in a month, would enhance Erste’s operations by nearly 10%.

Citi, which has presence in Hungary for about 20 years, has 10 local branches, all of which are in Budapest.

Citibank Hungary spokeswoman Eva Hencz told Reuters: "We cannot disclose details about the sale of our retail business at this phase."

The deal will not include Citi’s corporate portfolio and service centre in Budapest.

Sign up for our daily news round-up!

Give your business an edge with our leading industry insights.

Sign up