DenizBank to Purchase Citibank's Turkey Consumer Business
Baku, April 11 (AZERTAC). DenizBank and Citibank A.S. (Citi) signed an agreement in which DenizBank will purchase Citi's consumer banking business. The transaction, subject to customary regulatory approvals, is expected to close in the third quarter of 2013.
Under the agreement, DenizBank will take over a portfolio consisting of more than 600,000 customers, more than TL 1.2 billion (over $650 million) in gross assets, over TL1.5 billion in deposits (over $800 million), as of December 31, 2012, as well as Citi consumer banking employees and consumer branches in Turkey.
DenizBank CEO commented: "Becoming the fifth-largest private bank of Turkey in terms of consolidated assets from a pure banking license, DenizBank has advanced at full speed ahead for 16 years. We will now grow stronger with the signature fixed in order to include all retail banking activities of Citi Turkey to its organization."
Stating that the most significant determinant in acquiring the retail operation of Citi Turkey was the employees who add value, Hakan Ates continued: "As I always say, ‘We re-establish our bank with every new sailor joining us. Upon completion of the process we initiate today, we will have nearly 1,500 new employees. After successful balance sheet figures obtained in 2012, we now have the excitement and pride of acquiring Citibank Turkey's retail banking business line."
Serra Akcaoglu, CEO of Citi Turkey, said that Citi will continue to grow its business operations for corporations, financial institutions and commercial banking clients in Turkey: "Citi has taken a strategic decision to focus on its corporate and commercial banking businesses in Turkey. With our commitment to the country, we will continue to grow these businesses."
"We are pleased with the successful sale of our Turkish consumer operations. We believe this transaction represents the best possible outcome for our customers and employees. We would like to thank all our consumer clients for their trust and partnership," said Serra Akcaoglu, CEO of Citi Turkey.
The terms of transaction are not material to Citi.
Citi's Institutional Clients Group advised Citi on this transaction, while DenizBank was advised by Deniz Investment.
Citi has been present in Turkey since 1975 and remains committed to serving its corporate and commercial clients in the country, including medium and large corporations, financial institutions, public entities, and subsidiaries of foreign multinational companies. Citi will continue to provide these clients with best in class service and products and an unparalleled global network adapted to the requirements of local industry dynamics.
DenizBank was established in 1938 as a state economic enterprise aimed at funding of the developing Turkish maritime sector. In the early 1997, DenizBank was acquired by the Zorlu Holding in the form of banking license from the Privatization Administration and in October 2006, a leading European financial group, Dexia incorporated it to its structure. For six years, DenizBank operated in Dexia’s main shareholding and since 28 September 2012, continues providing services under the umbrella of Russia’s largest and well-rooted bank, Sberbank. DenizBank has become one of the remarkable banks of Turkey in a short period of time.
Other news in this section
