VeloBank has signed a conditional agreement to purchase the retail banking segment of Citi Handlowy. The transaction is expected to be finalized upon receiving the required regulatory approvals and achieving so-called operational readiness, which is anticipated by mid-2026. This is another step in strengthening VeloBank’s market position — benefiting both clients and employees. The combined experience of both institutions will serve as a foundation for developing innovative offerings and further enhancing customer service quality.
The shareholders of VeloBank — funds affiliated with Cerberus Capital Management, registered with the U.S. SEC, the European Bank for Reconstruction and Development (EBRD), and the International Finance Corporation (IFC) — will provide capital support for this transaction. Cerberus holds an 80.2% stake in the bank, while EBRD and IFC each own 9.9%.
The acquisition includes Citi Handlowy’s retail banking business, encompassing wealth management, brokerage services, micro-enterprise banking, credit cards, loans, retail credits, and branch networks. This takeover will accelerate VeloBank’s growth by expanding its product portfolio and strengthen its position as a challenger bank in the Polish financial market. By accessing a broader customer base — particularly in the private banking segment — the VeloBank brand will increase its recognition. The transaction also confirms the strong fit and complementarity of the two institutions, providing a solid foundation for creating long-term value for clients.
“When we created VeloBank, we knew we had to build a strong brand and a solid financial institution. Securing international shareholders, with Cerberus as the majority investor, along with EBRD and IFC in August 2024, and today’s transaction, are among the biggest M&A events in the Polish banking sector. Along the way, we have met all strategic objectives and are preparing for further growth. VeloBank is known for its technology, agility, innovative products, and best-in-class customer service. Citi Handlowy brings a unique product offering, retail banking, and the most preferred private banking services by clients. Both banks are rooted in a culture of quality and high organizational standards. Complementary products will enable us to create a unique offering for both retail and affluent clients, and the professionalism and commitment of employees of both institutions will lay the foundation for a new level of service for current and future customers,” said Adam Marciniak, CEO of VeloBank.
Upon completion of the transaction, Citi Handlowy’s retail customers will become VeloBank clients, with their relationships with advisors maintained. This strategic move will add value for clients of both banks, who will benefit from synergies between the organizations. Simultaneously, the combined workforce, comprising over 3,000 VeloBank employees and approximately 1,650 Citi Handlowy staff, will create an excellent professional environment — offering teams access to unique knowledge and experience.
“Our retail banking gains an investor for whom this segment is strategic. VeloBank intends to develop the business, increase market share, and provide the best solutions for clients. Importantly, our employees are moving to VeloBank. This means that clients will continue to be served by the same advisors with whom they often have long-standing relationships. Our goal is to ensure the smoothest and most comfortable transition possible for clients to their new bank,” said Elżbieta Czetwertyńska, CEO of Citi Handlowy.
“We are proud to support VeloBank’s management in the next stage of their ambitious growth. We believe this combination will accelerate the realization of the bank’s strategic priorities: delivering the best possible products to clients and actively participating in the long-term growth of the Polish economy,” noted Charles Dunlap, Senior Managing Director and Head of Global Financial Institutions Group Advisory at Cerberus.
“With this investment, VeloBank definitively closes the chapter of forced restructuring and transformation. This transaction is a milestone in the company’s development, highlighting the strength and flexibility of VeloBank. As shareholders, we look forward to continued cooperation with our co-investors and partners to support VeloBank’s further growth and its role in developing the Polish economy,” commented Francis Malige, Managing Director for Financial Institutions at the EBRD.
“Following our recent investment in VeloBank, we are pleased to see further growth and consolidation in the local market. Additional capital support from IFC confirms our strong conviction about the good prospects of the Polish financial sector and enables VeloBank to increase its market share and develop its offering of digital financial products,” emphasized Ary Naïm, Country Manager for Poland and IFC Manager for Central and Southern Europe.
For the current year, VeloBank plans to offer retail clients a fully digital mortgage, provide business clients with new business banking products, and pursue an investment fund (TFI) acquisition.
Source: https://ceo.com.pl/velobank-kupuje-czesc-detaliczna-citi-handlowego-90090
