DBS Group Holdings D05 has completed the acquisition of Citi’s consumer banking business in Taiwan. The integration was successfully executed over the recent weekend, on Aug 12 to 13.
The transaction has boosted DBS Taiwan’s consumer business growth by over 10 years.
Following the completion of the acquisition, DBS has become Taiwan’s largest foreign bank by assets. DBS Taiwan will also lead the market in loans, deposits, cards and investments among the country's foreign banks as the number of its consumer banking business more than doubles to over 1.1 million.
DBS Taiwan’s total loan balance now stands at $32 billion, up 1.5 times. The bank’s total deposit balance is now up by 1.6 times at $36 billion. The number of credit card accounts in DBS Taiwan is at over three million, which is up nearly five-fold. DBS Taiwan’s investment assets under management (AUM) has also tripled to over $12 billion.
Close to 3,000 employees have moved from Citi Consumer Taiwan to DBS.
“Our successful integration of Citi Consumer Taiwan with DBS continues our strategy of building meaningful scale in our core Asian markets. By bringing a prized Citi franchise into our fold, we accelerate our consumer business growth in Taiwan by at least 10 years. Overnight, revenue from the market will more than double to over $1.3 billion,” says DBS CEO Piyush Gupta.
See also: New Key Summary 123
“With the transaction, I am also confident that we will be able to provide more value to our customers, in particular, helping them grow their wealth through innovative products, and helping those who are business owners expand into new markets or participate in regional trade flows,” he adds.
“I am delighted to welcome our new Citi colleagues to the DBS family. Since we announced the transaction back in 2022, we have been working towards a seamless transition of the two businesses. Today marks a momentous milestone for DBS Taiwan, made doubly significant as we celebrate our 40th anniversary in the market,” says DBS Taiwan CEO Ng Sier Han.
“Over the years, DBS Taiwan has made significant strides with new innovations in digital banking and more recently, advancements in sustainability. Our enlarged franchise affords us greater opportunity to continue availing best-in-class products and services to our customers as we set ourselves apart as a different kind of bank – one that enables them to live more, bank less,” he adds.
See also: Resourse Library Event
On Jan 28, 2022, DBS announced that it was buying Citi’s consumer business in Taiwan. The bank put in a total $2.2 billion into the deal which includes a premium of $956 million in cash as well as $1.2 billion to support the risk-weighted assets and capital needs.
Shares in DBS closed 61 cents lower or 1.78% down at $33.62 on Aug 11.
