Citi Handlowy concluded a conditional contract for the sale of its retail part with Velobank – it was stated in the announcement. The finalization is to take place in mid -2026. Citi retail customers will become Velobank clients. The bank will also take over about 1650 employees. There is a reaction of the stock exchange to these reports.
On Wednesday morning, in response to this information, Bank Handlowy's share price around 11:00 it grew by 1.2 percent, to PLN 118.8 for participation. WIG was about 0.3 percent at that time. in the plus.
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Velobank buys the retail part of Citi Handlowy
We read in the Velobank communication that the finalization of the takeover of the retail part of the commercial Citi is to take place after receiving the required regulatory consents and “achieving the so -called operational readiness”, which is expected in mid -2026.
“The purchase transaction includes Citi Handlowy retail banking, including: property management, brokerage services, micro -enterprises, credit cards, loans, retail loans and branches. This acquisition will accelerate the development of Velobank by expanding the product offer (…)” – reads in the communiqué.
Velobank said that after the transaction was finalized, Citi Handlowy's retail customers would become his clients. The message shows that as a result of the transaction, around 1650 Citi Handlowy employees will go to Velobank, which currently employs over 3,000. people.
“Velobank in plans for the current year has, among others, to offer customers to retail fully digital mortgage, company clients – subsequent products from Business Banking, and in the scope of investment – purchase of TFI” – the bank said in a communiqué.
Citi Handlowy after the sale of the retail part
According to the announcement of Bank Handlowy, to which Citi Handlowy belongs, the separation of retail banking is to take place as part of the bank division. The retail part will include a portfolio of approx. PLN 6 billion in loans, approx. PLN 22.1 billion of deposits and approx. PLN 8.9 billion in management, with assigned equity of approx. PLN 0.9 billion. Bank Handlowy stated that the retail portfolio of mortgage loans expressed in foreign currencies in the amount of approx. PLN 24 million.
According to Bank Handlowy, in exchange for transferring Velobank a part of the retail part of BH will receive a package of Velobank shares, but it will be no more than 25 percent. all shares of this company. Then Velobank shares will be bought back from BH for about PLN 532 million, with a fixed part of PLN 432 million and a variable part, depending on the results of the retail segment, up to PLN 100 million.
“In connection with the conclusion of the contract, the bank will bear a net loss from a transaction in the amount of approximately PLN 380 million in the 2nd quarter of 2025. In addition, as a result of the transaction, about PLN 400 million of capital surplus will be released, resulting from the deconsolidation of assets and obligations being the subject of the transaction, which will be allocated to accelerate growth in the area of institutional banking,”
About Bank Handlowy and Velobank
Bank Handlowy is one of the oldest Polish banks. His shares debuted on the Warsaw Stock Exchange on June 30, 1997. Currently, the owner of 75 percent The action is American Citibank.
Velobank was created as a result of forced restructuring of Getin Noble Bank and then sold. The main shareholder of Velobank is the American Cerberus fund, which has 80.2 percent. shares, 9.9 percent They have a European Bank for Reconstruction and Development and an international financial corporation.
Source of the main photo: Kristi Blokhin/Shutterstock