Singapore UOB Bank to Retain 90% of Citigroup Consumer Business Employees in Southeast Asia after Merger, UOB Acquired Citi Consumer Business with 5.3 Million Retail Clients in Indonesia, Malaysia, Thailand & Vietnam for $3.7 Billion in 2022 January
12th May 2023 | Hong Kong
Singapore UOB Bank will be retaining 90% of Citigroup consumer business employees in Southeast Asia after merger of Citi businesses. In 2022 January, UOB had acquired Citi consumer business with 5.3 million retail clients in Indonesia, Malaysia, Thailand & Vietnam for $3.7 billion. In April 2021, Citi had announced plans to exit 13 retail markets (consumer business) and to focus on 4 key main hubs – London, UAE, Hong Kong and Singapore. The 13 countries are Australia, Bahrain, China, India, Indonesia, South Korea, Malaysia, the Philippines, Poland, Russia, Taiwan, Thailand and Vietnam.
“ Singapore UOB Bank to Retain 90% of Citigroup Consumer Business Employees in Southeast Asia after Merger, UOB Acquired Citi Consumer Business with 5.3 Million Retail Clients in Indonesia, Malaysia, Thailand & Vietnam for $3.7 Billion in 2022 January “
Jacquelyn Tan, Head of Group Personal Financial Services, UOB: “Our transformative decision to acquire Citigroup’s consumer businesses in four ASEAN markets during the pandemic has proven to be very timely, positioning us well as consumer spending returns with a vengeance following the reopening of economies worldwide post-COVID.
As consumers look for the best in dining, travel and retail at home and abroad, our unparalleled regional network, further boosted by this transformational deal, enables UOB to serve their unique lifestyle needs and preferences across ASEAN. Coupled with our partnerships with renowned brands domestically, regionally as well as globally, we offer the best deals, privileges and perks to customers for all that they love.”
Singapore UOB Bank to Retain 90% of Citigroup Consumer Business Employees in Southeast Asia after Merger
UOB 11th May 2023 – UOB’s acquisition of Citigroup’s consumer banking businesses in four key ASEAN markets has significantly boosted its retail banking business, and paved the way for its enlarged base of customers in the region to enjoy even more perks and privileges suited to their unique lifestyles and needs via partnerships with renowned domestic and global brands.
The completion of UOB’s acquisition of Citigroup’s consumer banking businesses in Malaysia, Thailand and Vietnam has already brought its regional retail customer count to over seven million as of 31 March 2023, with the latest completion of the Vietnam acquisition enabling the Bank to serve about 200,000 customers in the country. With the completion of the acquisition in Indonesia by end 2023, these four markets are expected to provide a S$1 billion boost to the Bank’s revenue on a full-year basis. The acquisition has also built stronger resilience in the business model with both geographical and revenue mix diversification. With Citigroup’s portfolio more geared towards cards business and unsecured lending, net credit card fees for the Bank almost doubled year-on-year in the first quarter of 2023, with Citigroup’s portfolio contributing a quarter of this, and total income from the Bank’s unsecured business is expected to almost double by end 2023. Separately, loans and deposits also grew almost 10 per cent and 15 per cent in the first quarter of 2023 compared with a year before.
For the first quarter of 2023, ASEAN-4 (i.e. Malaysia, Thailand, Indonesia and Vietnam) accounted for more than 35 per cent of the Bank’s Group Personal Financial Services income. UOB’s network of branches in Malaysia, Thailand and Vietnam has also expanded by 15 as of March 2023.
About UOB
UOB is a leading bank in Asia. Operating through its head office in Singapore and banking subsidiaries in China, Indonesia, Malaysia, Thailand and Vietnam, UOB has a global network of around 500 offices in 19 countries and territories in Asia Pacific, Europe and North America. Since its incorporation in 1935, UOB has grown organically and through a series of strategic acquisitions. Today, UOB is rated among the world’s top banks: Aa1 by Moody’s Investors Service and AA- by both S&P Global Ratings and Fitch Ratings.
Citi Exits 13 Markets, Sells Citi Australia Consumer Bank to National Australia Bank for $881 Million
Citi, one of the world’s largest bank and often referred to as Citibank, has announced the sale of Citi’s Australia consumer bank to National Australia Bank (NAB) for $881 million. Citi Australia consumer business includes A$7.9 billion of residential mortgages, A$9.0 billion of deposits, $4.3 billion of unsecured lending and around 800 Citi employees. Citi Australia’s institutional business is not included in the sale and the transaction is expected to occur by March 2022. In April 2021, Citi had announced plans to exit 13 retail markets (consumer business) and to focus on 4 key main hubs – London, UAE, Hong Kong and Singapore. The 13 countries are Australia, Bahrain, China, India, Indonesia, South Korea, Malaysia, the Philippines, Poland, Russia, Taiwan, Thailand and Vietnam. (AUDUSD ~ 0.7349) Read: Citi Exits 13 Markets
Citi Australia Institutional Business Remains
Citi Australia’s institutional business provides a comprehensive range of investment and banking services to approximately 1500 corporates, banks, governments and institutional investors in Australia, as well as clients offshore. Services include capital markets and corporate advisory, markets and securities services, commercial banking and treasury and trade solutions.
Citi Australia Consumer Bank Sale
National Australia Bank (NAB) was selected following an auction process to acquire Citi’s consumer business, which includes credit cards, loans, retail banking, mortgages and wealth management solutions for high net worth individuals. The bank is also a credit card provider for some of Australia’s leading brands including BOQ, Coles, Kogan, PayPal, Qantas, Suncorp and Virgin Money.
NAB will not be acquiring all of the technology systems or platforms that currently service these portfolios. NAB will enter into a Transitional Services Agreement (TSA) with Citigroup to assist with the integration of the Citigroup business into NAB. The TSA is expected to be in place for approximately 30 months. During this period, NAB will invest in a new technology platform to support the combined unsecured lending business.
Jane Fraser, Citi CEO:
“This is a positive outcome for our clients, our colleagues and for Citi. As this transaction shows, we are moving forward with urgency as we refresh our strategy and execute the decisions we have already made as part of that effort. We are focusing our resources on businesses where we have scale and competitive advantages in order to deliver growth and improved returns over time
In addition to serving our Wealth clients through four global hubs, we will continue to serve our institutional clients in Australia, as we have for nearly a century, and across the greater Asia Pacific region. We are very pleased with the economics of the transaction and we will use the capital generated to invest in our strategic priorities, as well as to continue to return capital to our shareholders.”
NAB CEO, Ross McEwan:
“The proposed acquisition of the Citigroup Consumer Business brings scale and deep expertise in unsecured lending, particularly credit cards, which continue to be an important way for customers to make payments and manage their cashflows. The cards and payments sector is rapidly evolving and access to a greater share of payments and transaction data will help drive product and service innovation across our Personal Banking business and deliver market leading customer experiences.
Citigroup’s management team has also built strong white label partnerships with household names in the airline, retail and financial services sectors over many years. This expertise, together with our commitment to deliver market leading products and services, provides an opportunity to grow with existing partners and add new partners.”
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