SINGAPORE, Nov 1 (Reuters) – Citigroup said on Tuesday it had completed the sale of its Malaysian and Thai retail banking businesses to Singapore’s United Overseas Bank (UOB) in a transaction expected to generate $1 billion in regulatory capital gains.
UOB said in a separate statement that it expects to complete the acquisition of Citigroup’s consumer banking businesses in Indonesia and Vietnam next year.
The consumer banking business comprises Citigroup’s unsecured and secured loan portfolio, wealth management and retail deposit businesses, UOB said.
This will be UOB’s biggest acquisition in two decades and will double its existing retail customer base to 5.3 million in four Southeast Asian markets, where it already has a large presence and competes with larger rivals, including DBS Group and OCBC.
“The acquisition gives us greater scale and supports our ambition to be the bank of choice for consumers and businesses in ASEAN,” said Wee Ee Cheong, deputy chairman and chief executive officer of UOB. (Reporting by Yantoultra Ngui; Editing by Savio D’Souza)