Commercial International Bank to Buy Citigroup's Egypt Retail-Banking Business-Update

By Nicolas Parasie and Justin Baer

Egypt's Commercial International Bank SAE said Tuesday it agreed to buy Citigroup Inc.'s retail business in the North African country.

Citigroup, which has moved to streamline its international operations and boost profits, had put the Egyptian unit up for sale as the U.S. banking giant continues to exit countries where it lacks scale and potential for growth.

Cairo-based Commercial International Bank beat nearly a dozen mostly regional lenders who were hoping to expand in the Arab world's most populous country. The deal will help boost CIB's presence with consumers and credit-card customers.

"Among the main attractions of the deal was the high quality portfolio and excellent skill set of the staff," CIB Chairman Hisham Ezz Al-Arab said in a statement.

Turmoil-hit Egypt in the past year has strived to revive its economy through a series of reforms aimed at courting foreign investments. Its population of more than 80 million remains largely underbanked and garnered interest from international banks in the past decade, some of which have since then sold their operations to other Middle Eastern competitors.

Citigroup still retains a small presence in Egypt but nevertheless joins some other international banks, including BNP Paribas and Societe Generale, who have sold most or all of their operations in the country.

Citigroup last year announced plans to exit 11 countries, including Japan and Hungary, around the globe to reduce costs. The bank's Egyptian consumer business has eight branches, and around 800 staff serving some 100,000 clients, a spokesman said at the time.

Write to Nicolas Parasie at [e-mail]