Manama-headquartered regional bank Ahli United Bank BSC (AUB) has agreed to acquire Citi’s consumer banking business in Bahrain.
The transaction, which is subject to regulatory approvals, includes the retail banking, credit card, and unsecured lending businesses, but excludes Citi’s institutional businesses.
Citi has stated that it remains committed to continuing to serve institutional clients in Bahrain locally, regionally, and globally.
As per the agreement, Citi consumer employees and employees supporting the consumer business will be offered employment from AUB upon close of the proposed transaction.
Upon closing, Citi expects the transaction will make a small contribution to the previously announced release of approximately $7 billion of allocated tangible common equity over time from the exit of its consumer franchises in 13 markets in Asia Pacific, Europe, Middle East, and Africa.
The CEO of Legacy Franchises at Citi, Titi Cole, said: “This is a positive outcome for our colleagues and our clients in Bahrain, and our top priority is to manage and support them through a seamless transition to AUB. We are proceeding with the same consideration for our remaining consumer exit markets.”
The country officer for Citi in Bahrain, Michel Sawaya, said: “We are very pleased to announce this transaction with AUB, a leading organisation with a strong growth strategy in consumer banking in Bahrain.
“We are confident AUB will provide excellent opportunities for our customers and employees. For Citi, this transaction will enable additional investment in our strategic focus areas, including our institutional businesses in Bahrain.”
AUB was selected by Citi following a competitive auction process. Prior to the closing of the transaction, there will be no change in the services provided to Citi’s consumer banking and wealth customers in Bahrain.
The proposed transaction, which is subject to customary regulatory conditions, is anticipated by the second half of 2022.
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