UOB has acquired Citigroup’s Consumer Banking’s businesses in ASEAN
UOB Group’ subsidiaries has entered into agreement to acquire Citigroup’s consumer banking businesses comprising its secured and unsecured lending portfolios, wealth management, and retail deposit businesses in Indonesia, Malaysia, Thailand, and Vietnam. Citigroup’s consumer businesses had an aggregate net asset value of approximately SGD 4 Billion and a customer base of about 2.4 million as of June 2021, and generated an income of about SGD 0.5 Billion in the first half of 2021.
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UOB said that the the total cash consideration for the Proposed Acquisition, will be calculated based on an aggregate premium equivalent to S$915 million plus the net asset value of the Consumer Business as at completion. The Proposed Acquisition is expected to be financed through excess capital and estimated to reduce UOB’s CET1 ratio by 70 basis points to 12.8%.
Mr. Wee Ee Cheong, Deputy Chairman and Chief Executive Officer (CEO) of UOB, said, “The acquisition of Citigroup’s retail business in our key markets of Indonesia, Malaysia, Thailand and Vietnam is a great opportunity that comes at the right time. UOB believes in Southeast Asia’s long-term potential and we have been disciplined, selective and patient in seeking the right opportunities to grow. Subject to regulatory approval, we look forward to integrating Citigroup’s quality portfolio and welcoming its team, and to creating value for our enlarged base of customers, employees and other stakeholders. The acquired business, together with UOB’s regional consumer franchise, will form a powerful combination that will scale up UOB Group’s business and advance our position as a leading regional bank.”
UOB’s retail strategy includes tapping the rising affluence in Southeast Asia, acquiring and servingc ustomers through its digital banking platform, UOB TMRW, and meeting their financial needs through its omni-channel approach as they move up the wealth continuum. The proposed Acquisition will expand UOB’s partner ecosystem and is expected to double UOB’s existing retail customer base in the four markets, accelerating its customer base target five years ahead of time.
Citigroup’s Consumer Business employs about 5,000 employees, including senior leadership and various teams with a wealth of experience. Their transfer will deepen UOB Group’s bench strength and unlock business synergies.
https://straitsjournal.com/uob-has-acquired-citigroups-consumer-bankings-businesses-in-asean/Banking & FinanceConsumer Bankingbank,banking,citi,consumer,Indonesia,malaysia,Singapore,thailand,uob,vietnamUOB Group' subsidiaries has entered into agreement to acquire Citigroup's consumer banking businesses comprising its secured and unsecured lending portfolios, wealth management, and retail deposit businesses in Indonesia, Malaysia, Thailand, and Vietnam. Citigroup's consumer businesses had an aggregate net asset value of approximately SGD 4 Billion and a customer...escveritas [email protected]AdministratorThe Straits Journal