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Citigroup to Sell China Consumer Wealth Portfolio to HSBC — Update

By Sherry Qin

 

Citigroup will sell its onshore consumer wealth portfolio in China to HSBC Holdings as the U.S. bank continues to leave consumer banking across parts of Asia.

It will sell its China consumer wealth portfolio, including clients, assets under management and deposits, worth approximately $3.6 billion, to HSBC Bank China.

"This transaction serves the interest of our clients, colleagues and all parties involved," Christine Lam, Citi China Country Officer and President of Citibank (China) said in a statement on Monday.

The transaction doesn't include Citi's institutional businesses in China, where it has a leading position, it said. The deal is expected to close in the first half of 2024 and terms were not disclosed.

The U.S. investment bank announced it would wind down its consumer-banking operations in China last December, following a strategic shift since Chief Executive Jane Fraser got the top job. In April 2021, Citi told investors it would refocus its Asia strategy by pulling back from consumer banking and devoting resources to wealth management and corporate customers.

It agreed to sell its consumer-banking franchises in Indonesia, Malaysia, Thailand, Vietnam to United Overseas Bank in January 2022.

 

Write to Sherry Qin at sherry.qin@wsj.com

 

(END) Dow Jones Newswires

October 09, 2023 00:07 ET (04:07 GMT)

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