Citigroup sells retail banking business in Thailand, Malaysia, Indonesia, Vietnam to UOB
Citigroup agreed to sell its consumer banking businesses in Thailand, Malaysia, Indonesia and Vietnam with a customer base of about 2.4 million to Singapore’s United Overseas Bank (UOB), the US bank announced on January 13.
UOB will pay Citigroup a total of $3.7 billion, covering net assets of the four local divisions including unsecured and secured lending portfolios, wealth management and retail deposits, as well as a premium of $690 million.
The funds will come from UOB’s internal capital and would not have a material impact on its balance sheet, the bank said.
Approximately 5,000 Citi consumer banking staff and supporting employees in the four markets are expected to be transferred to UOB when the proposed deal closes, which is expected sometimes between mid-2022 and early 2024, depending on the progress and outcome of regulatory approvals.
UOB gains ground in Southeast Asia
“The acquired businesses, together with UOB’s regional consumer franchise, will form a powerful combination that will scale up UOB Group’s business and advance our position as a leading regional bank,” Wee Ee Cheong, deputy chairman and chief executive officer at UOB, said in a statement.
Citigroup CEO Jane Fraser said last year that the bank would exit retail operations in 13 countries outside the US to improve returns. Many of those markets are in Asia-Pacific, including Australia, China and India. However, the bank will retain its institutional businesses in Indonesia, Malaysia, Thailand and Vietnam.
Last year, Citi said it agreed to sell its consumer banking businesses in the Philippines and Australia and was winding down consumer banking operations in South Korea. In Thailand, local lender Kasikornbank has initially shown interest for Citi’s operations, but eventually refrained from a bid.
[caption id="attachment_38072" align="alignleft" width="300"] Citibank's Thailand headquarters in Bangkok[/caption] Citigroup agreed to sell its consumer banking businesses in Thailand, Malaysia, Indonesia and Vietnam with a customer base of about 2.4 million to Singapore’s United Overseas Bank (UOB), the US bank announced on January 13. UOB will pay Citigroup a total of $3.7 billion, covering net assets of the four local divisions including unsecured and secured lending portfolios, wealth management and retail deposits, as well as a premium of $690 million. The funds will come from UOB’s internal capital and would not have a material impact on its balance sheet, the...
Citigroup agreed to sell its consumer banking businesses in Thailand, Malaysia, Indonesia and Vietnam with a customer base of about 2.4 million to Singapore’s United Overseas Bank (UOB), the US bank announced on January 13.
UOB will pay Citigroup a total of $3.7 billion, covering net assets of the four local divisions including unsecured and secured lending portfolios, wealth management and retail deposits, as well as a premium of $690 million.
The funds will come from UOB’s internal capital and would not have a material impact on its balance sheet, the bank said.
Approximately 5,000 Citi consumer banking staff and supporting employees in the four markets are expected to be transferred to UOB when the proposed deal closes, which is expected sometimes between mid-2022 and early 2024, depending on the progress and outcome of regulatory approvals.
UOB gains ground in Southeast Asia
“The acquired businesses, together with UOB’s regional consumer franchise, will form a powerful combination that will scale up UOB Group’s business and advance our position as a leading regional bank,” Wee Ee Cheong, deputy chairman and chief executive officer at UOB, said in a statement.
Citigroup CEO Jane Fraser said last year that the bank would exit retail operations in 13 countries outside the US to improve returns. Many of those markets are in Asia-Pacific, including Australia, China and India. However, the bank will retain its institutional businesses in Indonesia, Malaysia, Thailand and Vietnam.
Last year, Citi said it agreed to sell its consumer banking businesses in the Philippines and Australia and was winding down consumer banking operations in South Korea. In Thailand, local lender Kasikornbank has initially shown interest for Citi’s operations, but eventually refrained from a bid.
