The transaction is expected to result in a capital benefit to Citi of over US$1billion.
Citi and UOB first announced the transaction on 14 January 2022, as part of a broader sale agreement covering consumer banking across Malaysia, Thailand, Vietnam, and Indonesia and excluding the bank's institutional businesses. As previously disclosed, the sales of the Vietnam and Indonesia consumer businesses are expected to be completed in 2023.
Since announcing as part of its strategic refresh that Citi intends to exit consumer banking across 14 markets in Asia, Europe, the Middle East and Mexico, sales agreements have been signed in nine markets. Transactions have now closed in four markets including Australia, the Philippines, Thailand and Malaysia. Citi is also in the process of winding down consumer banking in South Korea and Russia.
Asia Pacific CEO Peter Babej said, "Today's announcement is positive for clients, colleagues, and our firm. Citi remains deeply committed to Malaysia and Thailand and we will invest further in both markets across our leading institutional franchise to support clients locally and where they do business across Citi's network. We thank former employees and customers for their commitment and support and wish them continued success in the future."
Citi's CEO of Legacy Franchises, Titi Cole, said, "With these completed sales, we have now divested four consumer businesses and are making swift and strong headway in delivering on our firm's strategy refresh. We are confident about the future our former employees and clients will have as part of UOB and look forward to seeing them prosper."
Tibor Pandi, Country Head, Citi Thailand said, "I would like to thank for a strong support and commitments of our former staff to prepare the smooth transition of the services for our clients to UOB, I wish them all the best for their new career path. Citi Thailand remains a key market for Citi globally and we remain committed and focused on serving institutional clients locally, regionally, and globally as we have for over half a century.
Source: JC&CO Communications
