Citi Completes Sale of Malaysia and Thailand Consumer Banking to UOB Group
HIGHLIGHTS
Singapore – Citi announced today it has completed the sale of Citi's Malaysia and Thailand retail banking and consumer credit card businesses to United Overseas Bank Limited (UOB) subsidiaries, which includes the transfer of over 3,000 related staff.
The transaction is expected to result in a regulatory capital benefit of approximately 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.
Citi 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 Legacy Franchises CEO Titi Cole said, "With these completed sales, we have now divested four consumer businesses and are making swift progress on delivering our firm's strategy refresh. We are optimistic about the future our former employees and clients will have as part of UOB and look forward to seeing them prosper."
Citi
Citi is a preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in its home market of the United States. Citi does business in more than 160 countries and jurisdictions, providing corporations, governments, investors, institutions and individuals with a broad range of financial products and services.
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Certain statements in this release are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. These statements are not guarantees of future results or occurrences. Actual results and capital and other financial conditions may differ materially from those included in these statements due to a variety of factors. These factors include, among others, the imposition of additional sanctions and export controls; governmental or regulatory requirements and actions; Citi's incurrence of unexpected losses, charges or other costs in connection with the wind down of its consumer business in Russia; macroeconomic and local market conditions; consumer preferences; and the precautionary statements included in this release. These factors also consist of those contained in Citi's filings with the U.S. Securities and Exchange Commission, including without limitation the "Risk Factors" section of Citi's 2021 Form 10-K. Any forward-looking statements made by or on behalf of Citi speak only as to the date they are made, and Citi does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.
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Certain statements in this release are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. These statements are not guarantees of future results or occurrences. Actual results and capital and other financial conditions may differ materially from those included in these statements due to a variety of factors. These factors include, among others, macroeconomic and local market conditions; satisfaction of closing conditions; governmental or regulatory requirements and actions; Citi's incurrence of unexpected losses, charges or other costs in connection with the sales and wind downs of its remaining consumer banking exits; the imposition of additional sanctions and export controls; and the precautionary statements included in this release. These factors also consist of those contained in Citi's filings with the U.S. Securities and Exchange Commission, including without limitation the "Risk Factors" section of Citi's 2021 Form 10-K. Any forward-looking statements made by or on behalf of Citi speak only as to the date they are made, and Citi does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.