According to a statement on its website, Citi has finalized the sale of its retail banking and consumer credit card businesses in Vietnam to United Overseas Bank Limited (UOB), including the transfer of around 575 staff. Citi expects to see a modest regulatory capital benefit from the transaction.
In January 2022, Citi and UOB announced the transaction as part of a larger sale agreement that excluded institutional businesses and covered consumer banking in Malaysia, Thailand, Vietnam, and Indonesia. Sales in Malaysia and Thailand were completed on November 1, 2022.
As part of its strategic refresh, Citi announced its intention to exit consumer banking in 14 markets across Asia, Europe, the Middle East, and Mexico. Since then, Citi has signed sales agreements in nine markets and has completed sales in six markets, including Australia, Bahrain, Malaysia, the Philippines, Thailand, and now Vietnam. Citi also previously announced wind-downs of its consumer business in China and Korea, and the wind-down of its overall presence in Russia is currently underway.
Citi Asia Pacific CEO Peter Babej expressed optimism about the announcement and stated that Citi remains committed to Vietnam, and will continue to invest in supporting institutional clients locally and globally. Citi Legacy Franchises CEO Titi Cole also commented on the completed sale, noting that it brings the company one step closer to delivering on its divestiture mandate as part of its strategy refresh.
Related
Source: Vietnam Insider