Deal enables digital transformation
The sale of Citi Australia’s consumer business to NAB is complete, the two banks have announced.
In August 2021, NAB reached an agreement to purchase the Citigroup Consumer Business, including its home lending portfolio, unsecured lending business, retail deposits business and private wealth management business.
The purchase was subject to approvals from the Commonwealth Treasurer, APRA and ACCC, which have now been received.
Citigroup and NAB confirmed the sale and acquisition in separate statements issued on 1 June.
Citigroup said its Australian consumer business, which includes credit cards, loans, retail banking, mortgages and wealth management solutions for high-net-worth individuals, would be transferred to NAB, with approximately 800 Citi employees, on Wednesday.
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Confirming the company was “delighted” to partner with NAB on the sale, Citi Australia CEO Marc Luet (pictured above left) said it was a “very positive outcome” for customers and consumer bank colleagues.
“Citi Australia will now focus its resources on the businesses where we have scale in order to deliver growth and improved returns,” Luet said.
“Our goal is to be Australia and New Zealand’s preeminent banking partner for corporate, investor and public sector clients with cross-border needs.”
The completed sale is the first divestiture among the 14 consumer markets in Asia, Europe, Middle East and Mexico, that Citi intended to exit as part of its strategy review.
NAB CEO Ross McEwan (pictured above right) said the acquisition of the Citigroup Consumer Business supported the bank’s ambition to build a “leading personal bank” with a simpler, more digital experience.
“We have good momentum in our personal banking division, driven by our aim to be simpler and more digital for customers and colleagues,” McEwan said.
Welcoming Citigroup colleagues to NAB, McEwan acknowledged their “deep banking expertise” and insights into changing customer needs.
“This will enable us to create more innovative, simple and digital products and services for customers, particularly in unsecured lending and supporting business partners with white label products,” McEwan said.
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NAB said a dedicated integration team would manage the transition of the Citigroup Consumer Business into NAB’s personal banking division, and the integration of the two businesses going forward, which was expected to occur progressively over the next two to three years.
From 1 June, NAB said it would continue to operate the Citigroup Consumer Business largely on a standalone basis.
Citigroup customers would be informed about any changes to available products, and the NAB service offering. Once the Citigroup Consumer Business was fully integrated, customers would benefit from NAB’s branch footprint, banking app and digital capabilities.
