Citigroup (NYSE:C) agrees to sell its consumer banking operations in Australia to National Australia Bank (OTCPK:NABZY)(OTCPK:NAUBF), part of its plan to exit 13 markets so it can focus its Global Consumer Banking unit on four wealth centers.
National Australia Bank will pay Citigroup (C) cash for the net assets of the business plus a premium of A$250M (US$184M), the company said in a statement.
Citi's Australian Consumer bank includes ~A$7.9B of residential mortgages, ~A$9B of deposits, and ~A$4.3B of unsecured lending.
For Citi, "we are focusing our resources on businesses where we have scale and competitive advantages in order to deliver growth and improved returns over time," said CEO Jane Fraser.
Citigroup (C) will use the proceeds to invest in its strategic priorities and to continue to return capital to shareholders, Fraser said.
Citi stock slips 0.3% in premarket trading.
The companies expect the transaction to close by March 2022.
"The proposed acquisition of the Citigroup Consumer Business brings scale and deep expertise in unsecured lending, particularly credit cards, which continue to be an important way for customers to make payments and manage their cashflows," said National Australia Bank (OTCPK:NABZY) CEO Ross McEwan.