Singapore-based United Overseas Bank (UOB) has completed the acquisition and full integration of Citigroup’s consumer banking business in Indonesia into UOB Indonesia (UOBI).
The acquisition included Citi’s retail banking, credit card, and unsecured lending businesses, along with the transfer of its employees.
In January last year, UOB agreed to acquire Citi’s consumer banking franchises in four Asian markets, including Indonesia, Thailand, Malaysia, and Vietnam, for a total of $3.65bn.
Pursuant to the agreement, UOB completed the acquisition of Citigroup’s consumer banking operations in Malaysia and Thailand in November last year, and Vietnam in March this year.
With the current transaction, the Singaporean bank completes its entire acquisition of Citigroup’s consumer banking businesses in all four ASEAN markets.
UOB in its statement said: “This concludes UOB’s entire acquisition of Citigroup’s consumer banking businesses comprising its unsecured and secured lending portfolios, wealth management and retail deposit business in all four markets in ASEAN.
“The entire acquisition has added close to 5,000 people to the Bank’s team strength. Coupled with organic expansion, UOB’s retail customer base in ASEAN stands strong at close to eight million currently, realising the goal of doubling the Bank’s retail franchise in the four markets and accelerating its growth targets five years ahead of time.”
UOB Indonesia will now serve Citigroup Indonesia’s consumer banking customers and is planning to continue engaging its customers through an omnichannel approach.
With support from UOB’s franchise and partner ecosystem, UOB Indonesia aims to enhance its products and solutions, to serve the dynamic needs of its customers.
Citi said that the transaction does not include its institutional businesses and the group will continue to serve its institutional clients in Indonesia.
The acquisition is part of Citi’s broader plan to exit consumer banking across 14 markets in Asia, Europe, the Middle East and Mexico.
The US investment bank has exited from nine of the 14 markets to date, including Australia, Bahrain, India, Malaysia, the Philippines, Taiwan, Thailand, Vietnam, and now, Indonesia.
Citi’s legacy franchises head Titi Cole said: “This is a testament to the commitment of our employees across these markets and a clear demonstration of Citi’s ability to execute our strategy. We are sincerely grateful to our former employees in Indonesia and wish them the very best in their careers with UOB.”
Citi Indonesia country officer Batara Sianturi said: “Citi is proud to have a long history in Indonesia, and we are intently focused on growing Citi’s institutional businesses in Indonesia, serving clients in the market, regionally and globally through our network to support cross-border needs.”
