MOSCOW, December 12. /TASS/. Uralsib Bank has completed a deal to purchase a retail loan portfolio of Citibank, the press service of Uralsib reported.
"Uralsib Bank has completed a transaction to purchase a portfolio of consumer loans to individuals from Citibank. The acquired portfolio includes consumer loans without collateral. From the moment the portfolio is purchased, their further servicing will be carried out at Uralsib Ban," the statement said.
The acquired portfolio has a high credit quality, enabling Uralsib to significantly increase its client base in Moscow and St. Petersburg.
On October 28, Citigroup announced that its Russian subsidiary will transfer its installment loan portfolio and credit card balances to Uralsib Bank. Uralsib confirmed this plan adding that the deal would contribute to an increase in the profitability of the bank's assets.
Russian Citibank will transfer its portfolio of consumer loans to Uralsib by the end of 2022, credit cards - in the first half of next year.
In April, 2021, it became known of the decision of Citi to sell retail business in 14 countries, including Russia. In March 2022, Citi decided to expand the sale of the Russian business by selling also its business working with small and medium sized enterprises.
In August 2022, Citigroup officially announced plans to wind down its retail business in Russia and commercial banking operations in the country.
It was reported that the costs of Citi due to winding down the mentioned businesses will amount to approximately $170 million over a period of about a year and a half. The wind-down process began in the third quarter of this year.