Transaction is part of the US bank's plan to exit its consumer business in Asia.
The completion of the sale of Citi’s Malaysia and Thailand retail banking and consumer credit card businesses to UOB is expected to result in a regulatory capital benefit of approximately $1 billion and the transfer of more than 3,000 staff, according to a media release sent Tuesday.
In January, Citi announced it would exit 14 consumer banking markets in Asia, Europe, the Middle East and Mexico; sales agreements have been signed in nine markets and transactions have now closed in four including Australia, the Philippines, Thailand and Malaysia. The agreements exclude the bank’s institutional businesses.
Winding Down Other Businesses
«Citi remains deeply committed to Malaysia and Thailand and we will invest further in both markets across our institutional franchise,» Citi Asia Pacific CEO Peter Babej said.
The bank is expected to complete the sales of the consumer businesses in Vietnam and Indonesia to UOB in 2023. Citi is also in the process of winding down consumer banking in South Korea and Russia.
