Citi Completes Sale of Indonesia Consumer Bank to UOB, Ending Asian Exits
Citi, a major US-based financial institution, has finalized the sale of its consumer banking operations in Indonesia to United Overseas Bank (UOB). This transaction concludes Citi's plan to divest its consumer units across Asia, a strategy that was first unveiled in 2021.
The sale to UOB is a part of a larger deal that includes Citi's consumer banking businesses in Malaysia, Thailand, and Vietnam. This series of divestitures has resulted in a substantial regulatory capital benefit for Citi, estimated at around $1.1 billion. The completion of the Indonesia sale marks the ninth global sale by Citi and represents the final step in its strategy to exit consumer banking in 13 markets across Asia. This follows on the heels of its recent sale of the China retail wealth portfolio to HSBC, a London-based banking giant.
The acquisition by UOB involves the full integration of Citibank Indonesia’s assets and liabilities into UOB Indonesia. This move is a significant expansion for UOB Group, bringing nearly 5,000 new employees into its fold and substantially increasing its retail customer base in the ASEAN region, which now stands at approximately eight million. This integration highlights UOB’s growth in the ASEAN financial sector and marks a notable shift in the regional banking landscape.