US-based bank Citi has completed the sale and migration of its Taiwan consumer businesses to Singapore-based DBS group . The sale, initially made public in early 2022, encompasses retail banking, credit card, mortgage, and unsecured lending businesses.

Following the acquisition of Citi Consumer Taiwan, DBS has reportedly become the country’s largest foreign bank by assets. Citi’s institutional client business in Taiwan is excluded from the transaction, as Citi retains its focus to provide services to its local clients in the country.  The sale did, however, imply the transfer of almost 3,000 employees. This transaction is anticipated to release USD 1.2 billion in capital, which was previously committed according to local regulatory stipulations.

Strategy-wise, Citi is currently undergoing a major shift. Citi has previously revealed its decision to withdraw from consumer banking in 14 markets spanning Asia, Europe, the Middle East, and Mexico. The company has reportedly entered into sales agreements in nine of the already mentioned markets, including Australia, Bahrain, India, Malaysia, the Philippines, Thailand, Vietnam, and Taiwan.

Later in 2023, Citi anticipates the finalisation of the sale of its consumer business in Indonesia. The previously announced winding down of Citi's consumer operations in China and Korea, as well as its overall presence in Russia, is currently underway. Moreover, Citi has communicated its intention to initiate an Initial Public Offering (IPO) for its consumer, small business, and middle-market banking operations in Mexico.

The company has also revealed its plan to restart the process of exiting its consumer banking operations in Poland in 2023, subject to market conditions. More details about the transaction As previously reported, an official from DBS explained that their integration of Citi Consumer Taiwan aligns with their goal of establishing a significant presence in the Asian markets. By incorporating Citi’s consumer unit into its operations, DBS seeks to expedite the growth of its consumer business in Taiwan by ten years.

Even more to this point, the revenue from this market is estimated to increase to over USD 960 million, thus more than doubling its previous value. Alongside this transaction, they also expressed confidence in their ability to enhance customer value. In early 2022, when the sale and migration were initially announced, a Citi official stated that they expected that the transaction would facilitate further investment in their strategic areas of focus.

The official press release published at that time also revealed that DBS Taiwan had been chosen by Citi through a competitive auction process. They also emphasised that throughout the transition leading up to the closure, there would be no alterations in the services provided to their consumer banking and wealth customers. .