Marks Ninth Sale Completed as Part of Citi’s Strategy Refresh and Final Full Consumer Divestiture for Asia
JAKARTA - Citi announced today it has successfully completed the sale and full migration of its Indonesia consumer businesses to UOB Indonesia (UOBI). The sale includes retail banking, credit card, and unsecured lending businesses, as well as the transfer of employees.
Citi and UOB first announced the transaction in January 2022 as part of a broader sale agreement covering consumer banking across Malaysia, Thailand, Vietnam and Indonesia. Sales in Malaysia and Thailand were completed on November 1, 2022, and the sale in Vietnam was completed on March 1, 2023. This transaction is expected to result in a modest regulatory capital benefit to Citi. In total, the sale of these four consumer businesses to UOB has resulted in a regulatory capital benefit of approximately US$1.1 billion.
The sale excludes the bank’s institutional businesses, and Citi remains focused on serving institutional clients in Indonesia locally, regionally and globally.
Since announcing its intention to exit consumer banking across 14 markets in Asia, Europe, the Middle East and Mexico as part of its strategic refresh, Citi has now closed sales in nine of those markets including Australia, Bahrain, India, Malaysia, the Philippines, Taiwan, Thailand and Vietnam, in addition to Indonesia.
The previously announced wind-downs of Citi’s consumer businesses 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 has restarted the exit process for the consumer banking business in Poland.
Titi Cole, Citi’s Head of Legacy Franchises, said, “Completing our final divestiture of a full consumer franchise in Asia marks a significant milestone in simplifying the firm. This is a testament to the commitment of our employees across these markets and a clear demonstration of Citi’s ability to execute on our strategy. We are sincerely grateful to our former employees in Indonesia and wish them the very best in their careers with UOB.”
Batara Sianturi, Citi Country Officer for Indonesia, said, “Citi is proud to have a long history in Indonesia, and we are intently focused on growing Citi’s institutional businesses in Indonesia, serving clients in the market, regionally and globally through our network to support cross-border needs.”
Citi is a preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in its home market of the United States. Citi does business in nearly 160 countries and jurisdictions, providing corporations, governments, investors, institutions and individuals with a broad range of financial products and services.
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Certain statements in this release are “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. These statements are not guarantees of future results or occurrences. Actual results and capital and other financial conditions may differ materially from those included in these statements due to a variety of factors. These factors include, among others, macroeconomic and local market conditions; governmental or regulatory requirements and actions; the imposition of additional sanctions and export controls; and the precautionary statements included in this release. These factors also consist of those contained in Citi’s filings with the U.S. Securities and Exchange Commission, including without limitation the “Risk Factors” section of Citi’s 2022 Form 10-K. Any forward-looking statements made by or on behalf of Citi speak only as to the date they are made, and Citi does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.