Citi announced that it has agreed to sell its onshore consumer wealth portfolio in China to HSBC Bank. The transaction includes clients, assets under management (AUM) and deposits totaling approximately US$3.6 billion.
The deal is expected to close in the first half of 2024. Terms of the transaction were not disclosed.
The bank first announced its plan to exit China consumer banking in April 2021 as part of a broader global strategy refresh.
Citi will continue to serve the needs of affluent to ultra-high net worth Chinese individuals through its regional wealth hubs in Singapore and Hong Kong.
Citi has now closed sales of its consumer businesses in eight markets across Asia, Europe, the Middle East and Mexico including Australia, Bahrain, India, Malaysia, the Philippines, Taiwan, Thailand and Vietnam.
The bank plans to complete the sale of its Indonesia consumer business later this year.
Titi Cole, Citi’s Head of Legacy Franchises said,
“We are taking important steps forward in exiting our consumer banking business in China and continue to make progress in our divestitures as part of our strategy to simplify Citi.
This is an excellent outcome for our local consumer wealth colleagues and clients in China.”
Christine Lam, Citi China Country Officer and President of Citibank (China) said,
“This transaction serves the interest of our clients, colleagues and all parties involved. Citi is proud to have a long history in China.
We are deeply rooted in this market. We look forward to continuing to support our institutional clients in China as their preeminent banking partner for cross-border needs.”
