Citi to sell shopper banking business in Southeast Asia to Singapore’s United Overseas Bank

Citigroup announced on Thursday its settlement to sell its shopper banking operations in Thailand, Malaysia, Indonesia and Vietnam to United Overseas Bank (UOB) for roughly US$2.97 billion.

UOB acknowledged that as a part of the agreement, it’ll purchase Citi’s retail deposit divisions, mortgage portfolios and wealth administration, in the four countries’ client banking sectors.
“We are excited to announce this transaction with UOB, a leading pan-Asian establishment,” Citi Asia Pacific CEO Peter Babej stated. “We are assured that UOB, with its sturdy tradition and broad regional ambitions, will provide glorious opportunities and a long-term house for our consumer banking colleagues in Indonesia, Malaysia, Thailand and Vietnam.”

According to UOB, the corporate had about 2.4 million customers and a internet value of roughly $2.97 billion as of June 30, 2021.
Following the announcement, UOB shares rose 1.23 p.c on Friday afternoon.
“The sale of those four shopper markets, along with our previously announced transactions, reveal our sense of urgency to execute our strategic refresh, stated Citi CFO Mark Mason. “We are committed to working in the best interests of our shareholders by focusing our resources on businesses that may ship progress, in addition to rising the capital we return to shareholders over time.”

Although it’s selling its retail operations, Citi will continue to personal and function its institutional operations in Vietnam, Thailand, Malaysia and Indonesia, CNBC stories.
Last year, Citi CEO Jane Fraser acknowledged that the financial institution deliberate to promote its retail enterprise in 13 international locations, excluding the United States, so as to increase returns. Many of these markets are in the Asia-Pacific area, together with India, China, Indonesia and Australia.

Citi also introduced last yr it has decided to sell its financial companies operations in Australia and the Philippines. Incredibly banking in South Korea would come to a detailed as properly.

“Focusing our business by way of these actions will facilitate additional funding in our strategic focus areas, including our institutional network throughout Asia Pacific, driving optimum returns for Citi,” Babej said.
The acquisition will enable UOB, Southeast Asia’s third-largest lender, a stronger presence in the space. After the transaction is accomplished, Citigroup predicts roughly 5,000 workers would transition to UOB.
Eye-opening anticipates that the transaction shall be completed between mid-2022 and early 2024, depending on the progress and completion of regulatory clearances..

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