Citi’s Polish unit to sell consumer banking business to Velobank S.A.

Bank Handlowy w Warszawie S.A. announced an agreement to sell its consumer banking business to VeloBank S.A, a Poland-based universal bank providing financial solutions to individuals, small and medium-sized companies. Bank Handlowy w Warszawie S.A., which operates under the Citi (C) Handlowy brand, is majority-owned by Citibank Europe, a wholly owned subsidiary of Citigroup. VeloBank S.A. is owned by funds affiliated with Cerberus Capital Management, the European Bank for Reconstruction and Development and the International Finance Corporation, a member of the World Bank Group. The transaction, which is subject to regulatory approvals, antitrust clearance and other customary conditions precedent, involves the demerger of Citi Handlowy’s consumer banking operations to VeloBank S.A., including wealth management, micro business banking, credit cards, consumer loans, deposits and assets under management, consumer clients of the brokerage business, branches and other consumer-related assets. Citi Handlowy consumer business employees and branches will also transfer to VeloBank S.A. upon completion of the proposed transaction to ensure continuity of services to customers. It excludes the bank’s institutional businesses, which Citi Handlowy will continue to invest in and grow in order to serve clients in Poland locally, regionally and globally. The transaction is expected to close by mid-2026. While financially immaterial to Citi, it is expected to result in a modest regulatory capital benefit at closing.