Biznes Fakty
Citi Handlowy sells retail part. VeloBank buys. There is a market reaction
Citi Handlowy has entered into a conditional agreement with VeloBank for the sale of its retail operations, as stated in a press release. The completion of this agreement is anticipated around mid-2026. Retail clients of Citi Handlowy will transition to VeloBank, which will also acquire approximately 1,650 employees. There has been a market response to these developments.
On Wednesday morning, following this announcement, the stock price of Bank Handlowy had risen by 1.2% to PLN 118.8 per share by around 11:00. At that time, the WIG index was up approximately 0.3%.
Bank Handlowy exchange rate (last 3 days) stooq.plVeloBank acquires the retail segment of Citi Handlowy
The announcement from VeloBank specifies that the acquisition of Citi Handlowy’s retail operations will be finalized following the necessary regulatory approvals and the achievement of „operational readiness,” which is expected to occur by mid-2026.
„The transaction encompasses the retail banking operations of Citi Handlowy, which include: wealth management, brokerage services, micro-enterprise banking, credit cards, loans, retail loans, and branches. This acquisition is set to accelerate VeloBank’s growth by broadening its product range (…)” – the release states.
VeloBank indicated that once the transaction is concluded, the retail customers from Citi Handlowy will be integrated into its client base. The announcement also notes that around 1,650 employees from Citi Handlowy will transition to VeloBank, which currently has over 3,000 employees.
„For the current year, VeloBank plans to provide retail clients with a fully digital mortgage, while offering corporate clients additional business banking products, and in terms of investments, plans to introduce new investment funds,” the bank elaborated in its statement.
Citi Handlowy post-sale of its retail operations
According to a statement from Bank Handlowy, which owns Citi Handlowy, the separation of the retail banking segment is part of the bank’s restructuring. This retail segment will comprise a portfolio of approximately PLN 6 billion in loans, around PLN 22.1 billion in deposits, and about PLN 8.9 billion in assets under management, with an assigned equity of approximately PLN 0.9 billion. Bank Handlowy has announced that it will retain a retail portfolio of mortgage loans in foreign currencies amounting to approximately PLN 24 million.
As per Bank Handlowy, in exchange for transferring the retail segment to VeloBank, BH will obtain a block of shares in VeloBank, not exceeding 25 percent of the total shares in that entity. Subsequently, VeloBank shares will be purchased from BH for approximately PLN 532 million, comprising a fixed portion of PLN 432 million and a variable component, contingent on the retail segment’s performance, amounting to up to PLN 100 million.
„Following the conclusion of the Agreement, the Bank expects to report a net loss from the transaction of around PLN 380 million in Q2 2025. Additionally, as a result of the transaction, approximately PLN 400 million in capital surplus will be released due to the deconsolidation of assets and liabilities involved in the transaction, which will be utilized to foster growth in the Institutional Banking sector,” Bank Handlowy disclosed.
About Bank Handlowy and VeloBank
Bank Handlowy is among the oldest banks in Poland, having its shares debut on the Warsaw Stock Exchange on June 30, 1997. Currently, 75 percent of its shares are held by American Citibank.
VeloBank was created following the mandatory restructuring of Getin Noble Bank and was subsequently sold. The primary shareholder of VeloBank is the American Cerberus Fund, which holds 80.2% of the shares, while both the European Bank for Reconstruction and Development and the International Finance Corporation own 9.9% each.
