Citi Wraps Up Asian Consumer Banking Exit with Sale to UOB Indonesiaby Fintech News Indonesia November 20, 2023
Citi has officially completed the transfer of its consumer banking operations in Indonesia to United Overseas Bank Indonesia (UOBI), in a move marking its ninth and final sale in its strategic refresh plan.
This sale, which includes Citi’s retail banking, credit card, and unsecured lending businesses, along with the transfer of employees, is part of the bank’s comprehensive strategy to exit consumer banking in Asia.
With the completion of sales in Malaysia and Thailand on 1 November 2022, and in Vietnam on 1 March 2023, the Indonesian transaction finalises Citi’s full consumer banking exit in Asia. This series of sales has collectively enhanced Citi’s regulatory capital by approximately US$1.1 billion.
Importantly, Citi’s institutional businesses in Indonesia are not included in this sale, allowing Citi to maintain its focus on serving institutional clients both locally and globally.
This latest divestiture in Indonesia is part of a larger exit strategy from consumer banking across 14 markets in Asia, Europe, the Middle East, and Mexico.
Citi has now successfully closed sales in nine of these markets, including Australia, Bahrain, India, Malaysia, the Philippines, Taiwan, Thailand, Vietnam, and Indonesia, aligning with its strategic vision.
The bank share that it is continuing with the wind-downs of its consumer businesses in China and Korea, as well as its overall presence in Russia.
Additionally, the bank is exploring an IPO for its consumer, small business, and middle market banking operations in Mexico and has reinitiated its exit process from the consumer banking sector 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.”