Citigroup To Offload Consumer Wealth Business Unit In China To HSBC

The transaction, which is expected to close in the first half of 2024, covers deposits and investment AUMs  approximately $3.6 billion, the US banking behemoth announced in a statement Monday.

However, the bank said the transaction does not include its institutional businesses in China, where the bank has  leading position.

“Citi will continue to serve the needs of affluent to ultra-high net worth Chinese individuals through its regional weal hubs in Singapore and Hong Kong leveraging its International Personal Bank and Citi Private Bank businesses,” the statement showed.

By starting operations in 1902 in China, Citi became one of the first global banks to incorporate locally in China way back in 2007.

Citi first announced its plan to exit China’s consumer banking business way back in 2021 as part of its larger glo strategy. And Monday’s announcement is the conclusion of its earlier disclosure for selling the consumer banking business in China in December 2022, the bank added.

Earlier in January, the US lender reached a deal with United Overseas Bank—controlled by billionaire Wee Cho Yaw—t sell its consumer banking business across Indonesia, Malaysia, Thailand, and Vietnam for about $3.6 billion.

As part of the strategic move, Citi has completed sales in eight markets—Australia, Bahrain, India, Malaysia, th Philippines, Taiwan, Thailand, and Vietnam —since announcing its intention to exit consumer banking across 14 markets in Asia, Europe, the Middle East and Mexico.

In April last year, Citigroup said that it would sell its consumer banking unit in Bahrain to Kuwait's Ahli United Bank (AUB)