UOB Group acquires Citigroup’s consumer business in Vietnam bet88 kèo elsewhere in ASEAN

On January 14, in Ho Chi Minh City, subsidiaries of Singapore’s United Overseas Bank (UOB) reached an agreement to acquire Citigroup’s consumer banking businesses for SGD4.915 billion (.65 billion).

The business range, which is specified as “the consumer business” in the agreement, consists of unsecured bet88 kèo secured lending portfolios, wealth management, bet88 kèo retail deposit businesses in Indonesia, Malaysia, Thailand, bet88 kèo Vietnam. UOB intends to bring onboard employees in the consumer business as part of the proposed acquisition. The acquisition will further strengthen bet88 kèo deepen its ASEAN franchise.

Citigroup’s consumer business had an aggregate net asset value of approximately SGD4 billion (.97 billion) bet88 kèo a customer base of about 2.4 million as of June 30, 2021, bet88 kèo generated income of approximately SGD500 million (1.86 million) in the first half of 2021. Excluding one-off transaction costs, the acquisition is expected to be immediately accretive to UOB’s earnings per share bet88 kèo return on equity.

The total cash consideration for the acquisition will be calculated based on an aggregate premium equivalent to SGD915 million (0.54 million) plus the net asset value of the consumer business at completion.

The proposed acquisition is expected to be financed through excess capital bet88 kèo is estimated to reduce UOB’s CET1 ratio by 70 basis points to 12.8 per cent, based on its capital position as of September 30, 2021.

Completion of the acquisition will be subject to regulatory approvals in each country bet88 kèo Singapore bet88 kèo is estimated to occur between mid-2022 bet88 kèo early 2024, depending on the progress bet88 kèo outcome of the regulatory approval process. Citigroup will assist UOB bet88 kèo its subsidiaries with the migration of involved customers bet88 kèo employees to ensure a smooth transition.

“The acquisition of Citigroup’s retail business in our key markets of Indonesia, Malaysia, Thailand, bet88 kèo Vietnam is a great opportunity that comes at the right time,” said Mr. Wee Ee Cheong, Deputy Chairman bet88 kèo CEO of UOB. UOB sees the potential in the Southeast Asian market bet88 kèo has sought opportunities in the region. Mr. Cheong said that it expects the deal to create value for its enlarged base of customers, employees, bet88 kèo stakeholders, scale up its business, bet88 kèo advance its position as a leading regional bank.

“We are confident that UOB, with its strong culture bet88 kèo broad regional ambitions, will provide excellent opportunities bet88 kèo a long-term home for our consumer banking colleagues in Indonesia, Malaysia, Thailand, bet88 kèo Vietnam,” said Mr. Peter Babej, CEO of Citi Asia Pacific.