Citi today announced that Ahli United Bank B.S.C. (AUB) has agreed to acquire Citi’s consumer banking business in Bahrain. The transaction, which is subject to regulatory approvals, includes the retail banking, credit card and unsecured lending businesses but excludes Citi’s institutional businesses. Citi remains committed to continuing to serve institutional clients in Bahrain locally, regionally and globally.
As per the agreement, Citi consumer employees and employees supporting the consumer business will be offered employment from AUB upon close of the proposed transaction.
Upon closing, Citi expects the transaction will make a small contribution to the previously announced release of approximately US$7 billion of allocated tangible common equity over time from the exit of its consumer franchises in 13 markets in Asia Pacific and Europe, Middle East and Africa.
“This is a positive outcome for our colleagues and our clients in Bahrain, and our top priority is to manage and support them through a seamless transition to AUB. We are proceeding with the same consideration for our remaining consumer exit markets,” said Titi Cole, CEO of Legacy Franchises at Citi.
Michel Sawaya, Citi Country Officer Bahrain, said, “We are very pleased to announce this transaction with AUB, a leading organization with a strong growth strategy in consumer banking in Bahrain. We are confident AUB will provide excellent opportunities for our customers and employees. For Citi, this transaction will enable additional investment in our strategic focus areas, including our institutional businesses in Bahrain.”
AUB was selected by Citi following a competitive auction process. Prior to the closing of the transaction, there will be no change in the services provided to Citi’s consumer banking and wealth customers in Bahrain. Closing of the proposed transaction, which is subject to customary regulatory conditions, is anticipated by the second half of 2022.