American banking giant Citigroup has signed an agreement to sell its retail banking and cards businesses business in Egypt to Commercial International Bank (CIB).
The sale, which is subject to regulatory approvals, will transfer 900 full time consumer banking and contract employees, eight Citi branches along with its Egyptian ATM network to CIB.
The deal, which is a part of Citi’s previously announced strategy to accelerate the transformation of the global consumer bank by refining its footprint and streamlining operations to 24 markets, will close later in 2015.
According to CIB chairman and managing director Hisham Ezz Al-Arab, the deal will increase CIB’s share of the market by 33% by adding 80,000 credit card holders to CIB’s existing portfolio of 240,000.
Citi country officer for Egypt Nadir Shaikh said: "We believe this transaction is a positive outcome for our Egyptian consumer banking customers and employees. We recognize their contribution to the rich Citi Egypt heritage and thank them for their longstanding support and partnership.
"This decision is in line with Citi’s global strategy of focussing our resources on those sectors where we have a competitive advantage, including our institutional franchise in Egypt."