Citibank Thailand headquarters in Bangkok Bank of America announced on Jan. 13 that Citigroup agreed to sell its consumer banking business in Thailand, Malaysia, Indonesia and Vietnam to Singapore-based United Overseas Bank (UOB), which has a customer base of about 2.4 million. UOB will pay Citigroup a total of $3.7 billion covering net assets across four local divisions, including a portfolio of unsecured and secured loans, wealth management and retail deposits, and a premium of $690 million. The funds will come from UOB’s internal capital and will not have a significant impact on its balance sheet,…
Bank of America announced on Jan. 13 that Citigroup agreed to sell its consumer banking business in Thailand, Malaysia, Indonesia and Vietnam to Singapore-based United Overseas Bank (UOB), which has a customer base of about 2.4 million.
UOB will pay Citigroup a total of $3.7 billion, covering the net assets of four local divisions including a portfolio of unsecured and secured loans, wealth management and retail deposits, and a premium of $690 million.
The bank said the funds would come from UOB’s internal capital and would not have a material impact on its balance sheet.
About 5,000 Citi Consumer Bank employees and support staff across the four markets are expected to be transferred to UOB upon closing, which is sometimes expected between mid-2022 and early 2024, depending on the progress and outcome of regulatory approvals.
UOB secures foothold in Southeast Asia
UOB Vice Chairman and Chief Executive Officer Ng Yi Cheong in a statement.
Citigroup Chief Executive Jane Fraser said last year that the bank would exit retail operations in 13 countries outside the U.S. to boost returns. Many of these markets are located in the Asia Pacific region, including Australia, China and India. However, the bank will retain its institutional business in Indonesia, Malaysia, Thailand and Vietnam.
Last year, Citigroup said it agreed to sell its consumer banking business in the Philippines and Australia, and is winding down its consumer banking business in South Korea. In Thailand, local bank Kasikornbank initially showed interest in the Citi business, but ultimately made no bid.
