Citibank preparing to merge operations with Handlobank

Citibank (Poland) S.A. is rumored to be preparing to merge its retail banking operations with Handlobank, the retail banking division of Bank Handlowy. Both banks are down playing the speculation but those knowledgeable with the issue say that backstage preparations are underway. The appearance of a joint retail banking chain could be an early signal of a merger of the two institutions. A merger has been a subject of consideration by many analysts following the acquisition of 86% of Handlowy shares by Citigroup, the parent company of Citibank. According to Citibank officials, Handlowy would remain a corporate bank but it has been unclear how the bank would reconcile two retail operations. Citibank officials say that because of the strength of Citibank, most services and products would continue to be offered under the Citibank brand name. (Prawo i Gospodarka, page 8)