The transaction is expected to result in a regulatory capital benefit of approximately US$1billion.

Citi and UOB first announced the transaction on 14 January 2022, as part of a broader sale agreement covering consumer banking across Malaysia, Thailand, Vietnam and Indonesia and excluding the bank’s institutional businesses. As previously disclosed, the sales of the Vietnam and Indonesia consumer businesses are expected to be completed in 2023.

Since announcing as part of its strategic refresh that Citi intends to exit consumer banking across 14 markets in Asia, Europe, the Middle East and Mexico, sales agreements have been signed in nine markets. Transactions have now closed in four markets including Australia, the Philippines, Thailand and Malaysia. Citi is also in the process of winding down consumer banking in South Korea and Russia.

Citi Asia Pacific CEO Peter Babej said, “Today’s announcement is positive for clients, colleagues, and our firm. Citi remains deeply committed to Malaysia and Thailand, and  we will invest further in both markets across our leading institutional franchise to support clients locally and where they do business across Citi’s network. We thank former employees and customers for their commitment and support and wish them continued success in the future.”

Citi Legacy Franchises CEO Titi Cole said, “With these completed sales, we have now divested four consumer businesses and are making swift progress on delivering our firm’s strategy refresh. We are optimistic about the future our former employees and clients will have as part of UOB and look forward to seeing them prosper.”