UOB has completed the acquisition of Citigroup’s consumer banking businesses in Malaysia and Thailand, says the bank via a bourse filing on Nov 1.
The completion of the acquisition of Citigroup’s consumer banking businesses in Indonesia and Vietnam is planned for 2023.
Citigroup’s consumer banking businesses comprise its unsecured and secured lending portfolios, wealth management and retail deposit businesses.
UOB, on Jan 14, announced that it would acquire Citi’s consumer business in Indonesia, Malaysia, Thailand and Vietnam, for around $5 billion.
Following its results for the 3QFY2022 ended Sept 30, the bank announced that there would be a $700 million to $800 million one-time charge, including the Malaysian stamp duty to be recognised over two years. The charge would have had a 70bps impact on its Common Equity Tier-1 (CET1) ratio.
Once completed, the acquisition is expected to double UOB’s existing retail customer base in the four markets to 5.3 million customers. Around 5,000 people will also be added to the bank’s team. According to UOB, the acquisition is part of its strategy to scale up its Asean retail businesses outside of its home market of Singapore.
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In its statement, UOB says it aims to achieve a full system integration with Citigroup’s businesses over the next 12 to 18 months.
“The completion of our acquisition of Citigroup’s consumer banking businesses in Malaysia and Thailand is an important milestone as we continue to invest in our regional franchise. The acquisition provides us with increased scale and supports our ambition to be the bank of choice for consumers and businesses in Asean,” says Wee Ee Cheong, deputy chairman and CEO of UOB.
“Today we warmly welcome new colleagues and customers to the UOB family. With the addition of Citigroup talents to our already strong team in both markets, we have the capacity and capabilities to fast-track our regional growth plans. We are committed to ensuring a seamless migration experience for Citigroup’s customers. Our expanded touchpoints and partner network also enable us to provide a wider range of products, services and benefits to our enlarged customer base,” he adds.
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Further to its statement, UOB has appointed Elaine Fan as its head of retail and brand in UOB Malaysia and Ronnie Lim as UOB Malaysia’s head of personal financial services.
In Thailand, the bank has appointed Vira-Anong Chiranakhorn Phutrakul as its head of retail and brand, and Yuttachai Teyarachakul as the bank’s head of personal financial services in the country.
“The acquisition of Citigroup’s consumer banking business will strengthen UOB Malaysia’s position with an enlarged portfolio, touchpoints and partner ecosystem. Citigroup’s consumer banking business fits naturally into our broader business strategy and underscores our long-term commitment to Malaysia. Citigroup Malaysia’s consumer banking customers can expect no change to their products, services and benefits and that they can look forward to a wider range of solutions and offers as we harness the synergies from the combined expertise and partner networks of this acquisition,” says Ng Wei Wei, CEO of UOB Malaysia.
“The completion of our acquisition of Citigroup’s consumer banking business in Thailand advances our goal of becoming the most preferred bank for consumers in Thailand. This also reflects our promise to always do what is right for our Thai customers and our commitment to the Kingdom of Thailand. Citigroup’s consumer banking business in Thailand, which is predominately unsecured lending, is a great match for UOB Thailand’s mortgage-dominated portfolio. The integration will generate synergies and opportunities for our customers as a result of having access to best-in-class products and services, as well as an expanded footprint and partner network,” says Tan Choon Hin, president and CEO of UOB Thailand.
As at 2.41pm, shares in UOB are trading 27 cents higher or 0.97% up at $28.03.
