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Egyptian lender CIB to buy Citi's Egypt retail business

The U.S. bank said last October that it was pulling out of consumer banking in 11 markets, including Egypt and Japan, to cut costs.
10.06.15 | Source: Reuters

Commercial International Bank (COMI.CA) (CIB) has agreed to buy Citigroup's (C.N) consumer banking business in Egypt, the North African country's largest listed lender said on Tuesday.

The deal will add 80,000 credit card holders to CIB's existing 240,000, growing its share of the market by 33 percent, the bank's chief executive told Reuters.

"Combining both would make a quantum leap... that will make us the number one issuer of credit card business (in Egypt)", Hisham Ezz al-Arab said in a telephone interview.

Citigroup said around 900 staff, eight branches and Citi's ATM network will transfer to CIB as part of the deal.

Ezz al-Arab said CIB would retain all of Citi's staff and had no plans to close any branches for the time being.

Neither statement gave a value for the deal, but Ezz al-Arab said the number "complies with what CIB is making in terms of return on assets and return on equities."

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