Investment bank and financial services company Citi has agreed to divest its onshore consumer wealth portfolio in China to HSBC Bank China.
The financial terms of the deal were not disclosed.
HSBC aims to expand offers to in-scope employees supporting Citi’s local consumer wealth business in the country.
Citi’s onshore consumer wealth portfolio in China comprises clients, assets under management (AUM), and deposits.
The transaction covers total deposits and investment AUMs of nearly $3.6bn.
Citi said that the deal does not include its institutional businesses in China, where the investment bank and financial services company is said to have a dominant position.
According to Citi, the deal advances Citi’s wind-down of consumer banking operations in China, which was announced in December 2022.
The company first announced its intention to exit China consumer banking in April 2021 as part of its wider global strategy refresh.
Citi said it will continue to cater to the requirements of affluent to ultra-high net worth Chinese persons through its regional wealth hubs in Singapore and Hong Kong. This will be done by utilising its international personal bank and Citi private bank businesses.
The company has closed sales in eight markets including Bahrain, India, Australia, Malaysia, the Philippines, Taiwan, Thailand, and Vietnam following its announcement to exit consumer banking across 14 markets in Asia, Europe, the Middle East, and Mexico.
Besides, Citi said that it will look for an IPO of its consumer, small business, and middle market banking operations in Mexico.
Furthermore, Citi aims to wrap up the divestiture of its Indonesia consumer business later this year.
It also said that the exit of consumer business in Korea and overall presence in Russia are in progress.
Citi legacy franchises head Titi Cole 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.”
The transaction is anticipated to be completed in the first half of 2024.
