Citi, one of the largest U.S. banks, announced on Monday that it has successfully completed the sale and migration of its Taiwan consumer businesses to DBS, a leading Singaporean bank. The deal, which was announced in January 2022, includes retail banking, credit card, mortgage and unsecured lending businesses, as well as the transfer of close to 3,000 employees. The transaction is expected to result in a regulatory capital benefit of approximately US$1.2 billion for Citi.
The sale is part of Citi’s strategy refresh, which involves exiting consumer banking across 14 markets in Asia, Europe, the Middle East and Mexico. Citi said it aims to simplify the firm and focus on its core strengths in serving institutional clients globally. Citi’s institutional client businesses in Taiwan are excluded from the sale, and Citi remains committed to growing its market-leading institutional franchise and supporting clients in the market and across the region through its global network.
DBS Expands Its Presence and Scale in Taiwan
DBS, the largest bank in Southeast Asia by assets, said the acquisition will significantly expand its presence and scale in Taiwan, where it has been operating since 1981. DBS said it will leverage its digital capabilities and regional expertise to enhance the customer experience and offer a comprehensive suite of products and services to the acquired customers.
DBS also said it will retain all the transferred employees and honor their existing employment terms and benefits. DBS said it values the talent and experience of the employees and will provide them with opportunities for career development and growth within the group.
Citi Continues to Execute Its Strategy Across Other Markets
Since announcing its intention to exit consumer banking across 14 markets in April 2021, Citi has signed sales agreements in nine markets and has now closed sales in eight of those markets including Australia, Bahrain, India, Malaysia, the Philippines, Thailand and Vietnam, in addition to Taiwan. Citi plans to complete the sale of its Indonesia consumer business later this year.
The previously announced wind-downs of Citi’s consumer business in China and Korea and overall presence in Russia are in progress. Citi also announced that it will pursue an IPO of its consumer, small business and middle market banking operations in Mexico, and that it intends to restart the exit process for the consumer banking business in Poland later in 2023, subject to market conditions.
