Citi to sell onshore consumer wealth portfolio in China to HSBC
Citi today announced that it has agreed to sell its onshore consumer wealth portfolio in China, including clients, assets under management (AUM) and deposits to HSBC Bank China.
HSBC plans to extend offers to in-scope employees supporting Citi’s local consumer wealth business in China.
The transaction covers total deposits and investment AUMs of approximately US$3.6 billion. Terms of the transaction were not disclosed, and the deal is expected to close in the first half of 2024.
Today’s announcement progresses the wind-down of Citi’s consumer banking business in China, which was announced in December 2022. Citi first announced its plan to exit China consumer banking in April 2021 as part of the firm’s broader global strategy refresh.
This announcement does not include Citi’s institutional businesses in China, where the bank has a leading position.
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 leveraging its International Personal Bank and Citi Private Bank businesses.
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.”
Since announcing its intention to exit consumer banking across 14 markets in Asia, Europe, the Middle East and Mexico as part of its strategic refresh, Citi has now closed sales in eight markets including Australia, Bahrain, India, Malaysia, the Philippines, Taiwan, Thailand and Vietnam.
Citi plans to complete the sale of its Indonesia consumer business later this year. In addition to China, the previously announced wind-downs of Citi’s consumer business in Korea and overall presence in Russia are in progress. Citi also announced that it will pursue an IPO of its consumer, small business and middle market banking operations in Mexico.