GDANSK, May 28 (Reuters) - Poland's Citi Handlowy

announced late on Tuesday that it has established new

strategic development directions for years 2025 through 2027, on

the condition that an agreement to sell its consumer business to

VeloBank is sealed.

Upon finalising the transaction, the bank intends to

introduce a new business model focused on institutional value

beginning in 2027. By that time, it aims to shift profits from

consumer business to higher earnings from institutional banking

and to diversify the revenue streams and balance sheet structure

of its institutional banking division.

The company's new goals include keeping the cost of income

ratio below 30%, compared to the 45% seen in the strategy

published in December.

Under the updated strategy, the planned regular dividend

payout ratio over a three-year period is expected to range

between 75% and 100%, the bank said.

In December, the bank projected a 15% return on equity for

2027, but now expects it to reach about 19%.