Citi has agreed to sell its onshore consumer wealth portfolio in China to HSBC. This includes clients, assets under management (AUM) and deposits. 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 $3.6 bn. Terms of the transaction were not disclosed, and the deal is expected to close in the first half of 2024. The announcement progresses the wind-down of Citi’s consumer banking business in China, which was announced in December 2022.
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Citi first announced its plan to exit China consumer banking in April 2021 as part of the firm’s broader global strategy refresh. Citi first opened in China in 1902 and became one of the first global banks to incorporate locally in 2007.
Citi to continue some operations on China
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.
Christine Lam, Citi China Country Officer and President of Citibank (China) Co., Ltd., 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.”
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.
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