- Banking giant National Australia Bank (NAB) agrees to purchase Citigroup’s Australian consumer business for $1.2 billion
- The deal includes Citigroup’s lending assets of $12.2 billion and about $9 billion in deposits
- CEO, Ross McEwan, says it was Citigroup’s big book of credit card customers that attracted them to the deal
- NAB is up 0.90 per cent and trading at $26.93 per share at 3:59 pm AEST
National Australia Bank (NAB) has agreed to purchase Citigroup’s Australian consumer business for 1.2 billion.
The deal includes Citigroup’s lending assets of $12.2 billion and about $9 billion in deposits.
CEO, Ross McEwan, said it was Citigroup’s large book of credit card customers that attracted them to the deal.
“The cards and payments sector is rapidly evolving and access to a greater share of payments and transaction data will help drive product and service innovation across our Personal Banking business and deliver market leading customer experiences,” he said.
However, the deal is subject to a number of regulatory approvals.
The proposed purchase includes a home lending portfolio, unsecured lending business, retail deposits business and private wealth management business.
Notably, NAB will not be purchasing the technology systems or platforms that service these portfolios.
“Citigroup’s management team has also built strong white label partnerships with household names in the airline, retail and financial services sectors over many years,” Mr McEwan said
“This expertise, together with our commitment to deliver market leading products and services, provides an opportunity to grow with existing partners and add new partners.”
On the market this afternoon, NAB was up 0.90 per cent and trading at $26.93 per share at 3:59 pm AEST.