Bangkok Citibank N.A., Bangkok branch ("Citibank Thailand") and TISCO Financial Group ("TISCO") announced today that both parties have signed an agreement involving Citibank Thailand's purchase of TISCO Bank's Unsecured Personal Loans portfolio and All-Ways' Credit Card business. The price was not disclosed. The deal is expected to close later this year subject to customary closing conditions.
The acquisition will be completed in two tranches; TISCO's personal loans portfolio is expected to be migrated to Citibank Thailand by the second quarter this year and the credit cards portfolio before the end of this year. The total portfolio at closing is projected to include over US$150 million in receivables and over 130,000 accounts.
"This transaction gives us the opportunity to further grow our business in Thailand as we work towards sustaining our positive growth momentum in our Consumer Banking business in the region. Last year we entered into a long-term distribution partnership with Coles in Australia and acquired the associated credit card receivables and this latest transaction underlines our further investments to support growth," said Anand Selva, Head of Global Consumer Banking Asia Pacific.
Commenting on the acquisition, Head of Global Consumer Banking for Citibank Thailand Vira-anong C. Phutrakul said, "Growth is a key priority for the Consumer Banking business in Thailand and this transaction gives us the opportunity to further scale our business domestically. As a top credit card issuer in Asia, Citibank will offer newly migrated clients access to market- leading credit card propositions which include our widely acclaimed dining and loyalty programs as well as exclusive benefits on the back of tie-ups with leading platform players in the region."
In addition to the Coles partnership, the Cards business in Asia has announced a number of key digital partnerships across selected markets in the region, including Thailand, over the past two years. Through these partnerships, Citibank clients are entitled to exclusive benefits and the ability to use their credit card points as currency to make purchases at various digital merchants including LINE, Agoda, Lazada, Airbnb and Garena.
In Asia Pacific, Citi has over 16 million credit card accounts with continued strong performance and growth. In 2017, Asia Pacific cards revenues grew 10 percent to US$2.9 billion in 2017 and net income was US$452 million—up 12 percent. At the end of the fourth quarter 2017, the consumer bank in Asia Pacific, which manages 17 of Citi's 19 consumer businesses globally, reported its sixth consecutive quarter of revenue growth.
Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.
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