Oct 28 (Reuters) - U.S. bank Citigroup ( C/PN ) has moved a

"very small" number of its employees from Lebanon into Turkey as

the conflict between Israel and Hezbollah escalates, a source

familiar with the matter told Reuters on Monday.

After nearly a year of exchanging fire across the border,

fighting has intensified over the last month, with Israeli

troops and Hezbollah fighters engaging in frequent clashes.

Beirut, Lebanon's capital and home to Citi's local office,

has also come under attack.

"The safety and well-being of our people remains our top

priority and we have taken every measure to ensure our

colleagues' safety," a spokesperson for the bank said.

"We continue to monitor the situation and have resources in

place to support our colleagues and their families."

The bank entered Lebanon in the 1950s but retreated in 1987

during the country's civil war. It re-established its

fully-licensed Lebanon branch in 1996.

It offers corporate, investment banking and lending services

in the country.

Citi's plans to move the employees were first reported by

Bloomberg News earlier on Monday.

(Reporting by Niket Nishant in Bengaluru and Tatiana Bautzer in

New York; Editing by Shinjini Ganguli)