Citi continues the sale of its non-core consumer assets, this time in Taiwan where DBS has been selected as the buyer.
DBS will acquire Citi’s consumer banking business in Taiwan, according to a statement, by paying cash for its net assets in addition to a premium of S$956 million ($707 million).
DBS will also make offers to all 3,500 employees of Citi’s Taiwan consumer unit.
DBS Taiwan Acceleration
As of the end of September 2021, Citi Consumer Taiwan had an earning asset base of $15 billion and total deposits of $11.2 billion, of which 70 percent were low-cost deposits.
According to DBS, it has acquired an «incredibly attractive and high-returns franchise» – it generated annual net profits of around $185 million on average in the two years before the Covid pandemic – alongside its own existing subsidiary and help «accelerate DBS Taiwan’s growth by at least 10 years».
The newly acquired unit is also expected to support the expansion of DBS Taiwan’s institutional and SME business.
