Sber-owned Denizbank takes over Citibank’s arm

ISTANBUL – Doğan News Agency

Turkey’s Denizbank, acquired by Russia’s Sberbank last year, said yesterday that it had signed an agreement to buy Citibank’s consumer banking business in Turkey.

Under the agreement, Denizbank will take over a portfolio consisting of over 600,000 customers, more than 1.2 billion Turkish Liras ($650 million) in gross assets and more than 1.5 billion in deposits as of end-2012.

Denizbank, one of Turkey’s top-10 lenders by assets, said the acquisition was expected to close in the third quarter, subject to regulatory approvals. The purchase price will be set after financial results are determined.

Citi Turkey Chief Executive Serra Akçaoğlu said Citi would continue to grow its business operations for corporates, 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,” she said in a written statement, adding that the transaction was not material to Citi.

Citigroup said in December it would sell or cut back its consumer business in Turkey as part of a rationalization scheme also involving the reduction of 11,000 jobs worldwide, intended to save as much as $1.1 billion a year.

Sberbank acquired its 99.85 percent stake in Denizbank for $3.5 billion.