Citigroup has agreed to sell its consumer banking business in Hungary to Erste Group Bank of Austria.

Financial terms were not disclosed. Citigroup said the deal is not material to its finances. The sale is expected to close by Dec. 31, pending regulatory approval.

The group, which is part of Citi Holdings, consists of Citigroup's retail banking, consumer loan and card businesses in Hungary. Group employees will be transferred to the new owner.

Erste Group will combine the business with its bank operations in Hungary, Erste Befektetési.

Citi will maintain operations in Hungary to serve corporate clients, public sector clients and financial institutions. It will also continue to serve multinational clients with operations in Hungary.

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