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Bank Handlowy w Warszawie SABank Handlowy signs agreement to sell its consumer banking business to VeloBank
Bank Handlowy, the Warsaw-listed unit of Citigroup signed an agreement to sell its consumer banking to VeloBank lender, the bank wrote in a press release. As indicated, the sale of this business is consistent with Bank Handlowy's strategy and will contribute to the dynamic growth of the bank as a leading partner for companies and institutions in Poland.
"Upon execution of the exit of its consumer banking business, Bank Handlowy aims to be one of the most efficient financial institutions on the Polish market. By 2027, the ROE is expected to be around 19 percent, ROA is to be around 2.6 percent, and cost-to-income ratio below 30 percent," it was written in the release.
Bank Handlowy said that it also plans to continue its dividend policy by allocating 75-100 percent of net profit to dividend payments, subject to regulatory approval.
"Our consumer banking in turn gains an investor for whom this is a strategic segment. VeloBank intends to grow, increase the market share and deliver the best solutions to the customers. What is very important, our employees are moving to VeloBank," said the bank's CEO Elzbieta Czetwertynska.
"This means that customers will have the same advisors with whom they often have long-term relationships. Our goal is to provide customers with the smoothest transition to their new bank," she added.
The lender stressed that it intends to remain listed on the market.
"After exiting the consumer business, Bank Handlowy will remain a company listed on the Warsaw Stock Exchange. As in the past, we plan to regularly pay dividend to our shareholders. We are also in discussions with our regulator about paying undistributed profits from previous year," Elzbieta Czetwertynska added.
It is the bank’s intention to pay out to shareholders the proceeds from the sale of the consumer business, subject to regulatory approval.
Bank Handlowy expects that by 2027, the net income corresponding to consumer banking operations will be rebuilt as a result of the execution of the institutional banking expansion strategy.
The bank plans to engage in initiatives that are in line with the country's strategic priorities, such as energy transition and the growing defence investments resulting from the geopolitical situation. It will leverage Handlowy’s global network to facilitate advanced and innovative transactions in the Polish market.
An important element of the bank's strategy is also to support clients in the transformation of their business models towards sustainable development. Bank Handlowy will allocate PLN 2 billion (EUR 470.6 mln) for the green transformation, offering its clients a wide range of solutions.
han/ ao/
