Citi Continues to Execute on Global Consumer Bank Strategic Actions
Citi announced it has reached agreement with UOB Group (UOB) on the acquisition of Citi’s consumer banking franchises in Indonesia, Malaysia, Thailand and Vietnam, 14 January 2022. The transaction includes retail banking and credit card businesses but excludes the bank’s institutional businesses in all four countries. Citi remains committed and focused on serving institutional clients in these countries locally, regionally and globally.
The agreement covers all related Citi employees, with approximately 5,000 consumer bank and supporting employees expected to transfer to UOB upon close of the proposed transaction. UOB will pay Citi cash consideration for the net assets of the acquired businesses, subject to customary closing adjustments, plus a total premium of US$ 690million (or equivalent to Rp 9.876 trillion with the exchange rate of Rp 14.300) for the four countries.
Upon closing, Citi expects the transaction to result in the release of approximately US$ 1.2 billion (or equivalent to Rp 17.16 trillion) of allocated tangible common equity, as well as an increase to tangible common equity of over US$200 million [or equivalent to Rp 2.86 trillion).
As previously announced, Citi’s exit from its consumer franchises in 13 markets across Asia Pacific and EMEA is expected to release approximately US$ 7 billion (or equivalent to Rp 100.1 trillion) of allocated tangible common equity over time.
Peter Babej, Citi Asia Pacific CEO, said, “We are excited to announce this transaction with UOB, a leading pan-Asian institution. We are confident that UOB, with its strong culture and broad regional ambitions, will provide excellent opportunities and a long-term home for our consumer banking colleagues in Indonesia, Malaysia, Thailand and Vietnam. Focusing our business through these actions will facilitate additional investment in our strategic focus areas, including our institutional network across Asia Pacific, driving optimal returns for Citi.”
