Connect with us

Hi, what are you looking for?

Banking

Citi to sell consumer banking biz in Southeast Asia to UOB Group

Citigroup has reached an agreement with United Overseas Bank (UOB) Group on the acquisition of its consumer banking franchises in Indonesia, Malaysia, Thailand and Vietnam. The transaction includes retail banking and credit card businesses but excludes the bank’s institutional businesses in all four countries. Citi said it remains committed and focused on serving institutional clients in these countries locally, regionally and globally. 

The agreement covers all related Citi staff, with approximately 5,000 consumer bank and supporting employees expected to transfer to UOB upon close of the proposed transaction. UOB will pay Citi cash consideration for the net assets of the acquired businesses, subject to customary closing adjustments, plus a premium of S$915 million (US$690 million). 

Upon closing, Citigroup expects the transaction to result in the release of approximately US$1.2 billion of allocated tangible common equity, as well as an increase to tangible common equity of over US$200 million. Citi’s exit from its consumer franchises in 13 markets across the Asia Pacific and EMEA is expected to release approximately US$7 billion of allocated tangible common equity over time. 

Peter Babej, Citi Asia Pacific CEO, said, “We are confident that UOB, a leading pan-Asian institution, with its strong culture and broad regional ambitions, will provide excellent opportunities and a long-term home for our consumer banking colleagues in Indonesia, Malaysia, Thailand and Vietnam. Focusing our business through these actions will facilitate additional investment in our strategic focus areas, including our institutional network across the Asia Pacific, driving optimal returns for Citi.”

Click to comment

Leave a Reply

Your email address will not be published.

PR Newswire