On Wednesday, NAB confirmed that its acquisition of Citigroup’s Australian consumer business has been completed after the two firms reached an agreement in August 2021.
NAB said it had set up a dedicated integration team to manage the transition of Citi’s consumer business into its own personal banking division and the subsequent integration of both businesses which is expected to occur progressively over the next two to three years.
The acquisition worth approximately $1.2 billion includes Citi’s home lending portfolio, unsecured lending business, retail deposits business and private wealth management business.
In a statement, NAB CEO Ross McEwan said that the acquisition supported the bank’s ambition to build a leading personal bank with a simpler, more digital experience.
“We have good momentum in our personal banking division, driven by our aim to be simpler and more digital for customers and colleagues,” he said.
“The purchase of the Citigroup Consumer Business gives us greater scale to support investment in new technology to deliver market-leading digital capabilities and product innovation.”
For now, NAB intends to continue to operate Citi’s consumer business on a mostly standalone basis and the bank said that it would communicate with customers about any changes to available products and its service offering.
The sale will also see approximately 800 Citi employees join NAB from this week.
“We welcome our new Citigroup colleagues to NAB. They bring deep banking expertise and insights into how customers’ needs continue to change,” said Mr McEwan.
“This will enable us to create more innovative, simple and digital products and services for customers, particularly in unsecured lending and supporting business partners with white label products.”
Citi Australia CEO Marc Luet said that the transaction had delivered a very positive outcome for its customers and consumer bank colleagues.
“Citi Australia will now focus its resources on the businesses where we have scale in order to deliver growth and improved returns,” he said.
“Our goal is to be Australia and New Zealand’s preeminent banking partner for corporate, investor and public sector clients with cross-border needs.”
Following a strategic review, Citi previously indicated that it would exit 14 consumer markets across Asia, Europe, the Middle East and Mexico, with the sale of the Australian consumer business representing its first divestiture.
Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.