C - Citi closes sale of Taiwan consumer business to DBS
2023-08-14 07:13:44 ET
Citigroup ( NYSE: C ) has completed the sale of its Taiwan consumer banking business to Singapore's largest bank DBS ( OTCPK:DBSDF ), with its integration executed over the weekend.
Nearly 3K employees from Citi Consumer Taiwan have moved over to DBS ( OTCPK:DBSDF ). Citi's ( C ) retail banking, credit card, mortgage and unsecured lending businesses in Taiwan were included in the sale, while its institutional client businesses were excluded.
"The transaction is expected to result in a regulatory capital benefit of ~$1.2B," Citi ( C ) said in a statement .
DBS ( OTCPK:DBSDF ) is now Taiwan's largest foreign bank by assets, as the deal resulted in its consumer banking customers more than doubling to over 1.1M, while investment AUM more than tripled to over S$12B.
"By bringing a prized Citi franchise into our fold, we accelerate our consumer business growth in Taiwan by at least 10 years," said DBS CEO Piyush Gupta. "Overnight, revenue from the market will more than double to over S$1.3B."
The sale is part of Citi's ( C ) efforts to exit consumer banking across 14 markets. The bank closed sales in eight markets including Australia, India and Malaysia. Citi ( C ) plans to complete the sale of its Indonesia consumer business later this year.
Citi ( C ) is also working towards winding down its consumer business in China and Korea, as well as its overall presence in Russia.
Meanwhile, the bank will pursue an IPO of its consumer, small business and middle market banking operations in Mexico. It plans to restart the exit process for its consumer banking business in Poland later in 2023.
More on Citi's consumer banking
- Citi to sell consumer banking franchise to UnionBank of the Philippines
- Citi to sell Taiwan consumer banking unit to DBS for $707M
- Citi to offload India consumer business to Axis Bank for $1.6B
- Citi to sell Bahrain consumer banking business to Ahli United Bank
- Citigroup's Management Needs To Execute With More Urgency
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Citi closes sale of Taiwan consumer business to DBS