GE Money Bank Latvia signs agreement to transfer several of its product portfolios to Citadele Bank
Consistent with its strategy to exit the Latvian market prudently and responsibly, GE Money Bank has signed an agreement to transfer several of its product portfolios to Citadele Bank.
Under the agreement, Citadele will take over GE Money Bank Latvia’s current accounts, deposits, saving accounts and performing loans.
GE Money Asset Management funds and 2nd and 3rd-level pension funds will also move to Citadele Asset Management.
The transaction is subject to regulatory approval.
Commenting on the agreement, Citadele Bank CEO Guntis Belavskis, said: “This deal is another step forwards in delivering of Citadele’s business plan. GE Money Bank’s customer portfolio presents synergies with Citadele’s, and GE Money Bank’s products and services are fully compatible with Citadele’s products and services – for a key factor in enhancing customer satisfaction. Citadele is present in areas of the country where GE Money Bank customers are located. Our aim is not just to acquire product portfolios but to improve customer service and provide customers with a greater choice of banking services. We will be honoured to welcome GE Money Bank customers to join our bank, and we believe GE Money Bank customers will gain from this takeover. We have prepared for this step very carefully and we will make sure that each and every one of GE Money Bank’s customers receives outstanding service.”
“For the convenience of existing customers of GE Money Bank, till September 20 Citadele employees will be placed in GE Money Bank’s branches in Daugavpils, Ludza, Liepaja and Riga. Our employees will provide an opportunity for customers to obtain detailed information regarding the transition of GE Money Bank Latvia products to Citadele Bank,” states Beļavskis.
GE Money Bank CEO Jurita Brunava: “This sale of majority of GEMBL’s portfolio ensures an on-going service to customers of our bank as we are confident that GE Money Bank customers transferring to Citadele will have access to an equivalent level of service. Under our existing cooperation with Citadele Bank there is commission-free cash withdrawal from GE Money Bank as well as from Citadele ATMs for customers of both banks. Taking into account Citadele’s strong position in the Latvian market, we are confident our customers will be well taken care of.”
GE Money Bank customers can already open account in Citadele Bank
The transition process will be seamless for customers. Subject to regulatory approval, GE Money Bank Latvia current accounts, loans, deposits and saving accounts should move to Citadele.
The GE Money Bank will continue providing services until 20 September, 2013 (inclusive). Bank Citadele will start to service GE Money Bank customers as of September 23rd.
To ensure uninterrupted service when the transition takes place overnight, GE Money Bank customers may already open a Citadele account and subscribe to Citadele online banking services and/or select a suitable Citadele payment card.
All customers have been sent detailed information on the transition process.
Subject to approvals from the FCMC and the State Social Insurance Agency, Citadele Asset Management will take over GE Money Bank 2nd level pension plans “Blues” and “Jazz” and 3rd level pension plans „Twist” and „Rumba“. After taking over the servicing of GE Money Bank customers, we will maintain the GE Money Bank’s high-quality management bringing the professionalism of our own specialists whose performance is reflected in the long term results of Citadele Asset Management pension plans,” said CEO Citadele Asset Management Uldis Upenieks.
GE Money Bank will provide services to its existing customers until the transition date
Until the transition date, GE Money Bank Latvia will continue to provide its services for existing customers and keep their money safe and stable. It is important to note that customers with outstanding loans must keep to their agreed repayment schedule.
GE Money Bank Latvia has financial strength and stability: its liquidity ratio is more than double the regulatory minimum.
After the majority of GEMBL’s product portfolio moves to Citadele Bank, GE Money Bank Latvia will hand back its banking license to the regulator – it will cease to be a regulated credit institution - and will stop all banking operations in Latvia, remaining product lines and transactions, payment cards and I-Bank.
Customers who have changed their postal address or telephone number are invited to update their contact information by contacting GE Money Bank, so that the Bank can provide sufficient information in advance how the transfer process of the product portfolios will be organized.
Customers who have specific questions, require further information to update their contact information are invited to contact:
Enquiries about GE Money Bank’s current services: GE Money Bank Latvia’s call center – 1878 (working days from 09:00 – 18:00 PM), go to any branch, or send a message via GE Online “Mail” or visit the Bank’s website: www.gemoneybank.lv
Enquiries about the portfolio transition and Citadele Bank services: any Citadele branch across the country, Citadele employees in GE Money Bank’s branches in Daugavpils, Ludza, Liepaja and Riga as well customer call center (24 hrs) – +371 67010000 or send message to info@citadele.lv.
Background
AS GE Money Bank started operations in Latvia in late April 2008 after merging AS GE Money and AS Baltic Trust Bank. The Bank provides a range of retail and corporate banking services.
Consistent with its strategy to focus on a smaller number of larger markets, GE Capital announced its intention to exit the Latvian platform in a prudent and responsible way over two years ago.
About Citadele Bank
Citadele is a local Latvian bank, which offers banking, financial and asset management services. Citadele group is represented in the Latvian market as well as in 9 other countries. Citadele Bank is the only collaboration partner of American Express® in Latvia and Lithuania who is entitled to issue American Express credit cards. Currently, Citadele is the third largest bank in terms of the number of active clients, it also ranks third by the number of payment cards, and it is among the market leaders in the credit card market in Latvia. Citadele ranks fourth in terms of the biggest network of ATMs, and it assumes the same position in terms of the network of branch offices in Latvia. In 2012 the bank was recognized as the best governed state-owned enterprise in the Baltic States according to a study conducted by the Baltic Institute of Corporate Governance. Citadele’s vision is to become the most valuable local financial group in the Baltic States. 75% minus one Citadele Bank’s shares are possessed by the State Joint Stock Company Privatization agency on behalf of the Latvian State and the owner of 25% plus one share is the European Bank for Reconstruction and Development (EBRD).