Citigroup has made the decision to sell its onshore consumer wealth portfolio in China to HSBC Holdings as part of its ongoing strategic shift away from consumer banking in certain parts of Asia.
The sale will encompass Citigroup’s China consumer wealth portfolio, which includes clients, assets under management, and deposits, and is valued at approximately $3.6 billion. HSBC Bank China will be the recipient of this transaction.
In a statement released on Monday, Christine Lam, Citi China Country Officer and President of Citibank (China), expressed that this deal is in the best interest of all parties involved, including clients and colleagues.
It is important to note that this transaction does not involve Citi’s institutional businesses in China, where it holds a leading position. Details regarding the terms of the deal have not been disclosed, but it is anticipated to be finalized by the first half of 2024.
Citigroup had previously disclosed its plans to wind down its consumer-banking operations in China in December 2021, following a strategic shift initiated by Chief Executive Jane Fraser. In April 2021, Citi informed investors of its intention to realign its Asia strategy by refocusing resources on wealth management and corporate customers while scaling back its presence in consumer banking.
In January 2022, Citigroup also reached an agreement to sell its consumer-banking franchises in Indonesia, Malaysia, Thailand, and Vietnam to United Overseas Bank.