HSBC acquires Citi’s $3.6bn consumer wealth portfolio in China
HSBC has agreed to purchase Citi’s retail wealth management portfolio in China, including deposits and investment assets under management (AUM) worth $3.6 billion.
HSBC is set to buy Citi’s consumer wealth business in China
While terms of the transaction remain undisclosed, the deal is expected to close in the first half of 2024, with HSBC Bank China planning to extend employment offers to “in-scope employees”.
Describing the deal as an “excellent outcome” for Citi’s China clients and consumer wealth colleagues, Titi Cole, Citi’s head of legacy franchises, says: “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.”
Citi adds that the sale does not include its institutional businesses in China, claiming it holds a “leading position” in that area, and that it aims to continue serving China’s ultra-high net worth individuals through regional hubs in Singapore and Hong Kong.
Strategic refresh
The deal follows Citi’s move to wind-down its consumer banking business in China, which was announced in December 2022. The bank first announced its plan to exit China’s consumer banking market in April 2021.
In September 2022, Citi had announced its intention to exit consumer banking across 14 markets in Asia, Europe, the Middle East and Mexico as part of a global “strategic refresh”.
So far, it has closed sales in eight markets including Australia, Bahrain, India, Malaysia, the Philippines, Taiwan, Thailand and Vietnam, with plans to close the sale of its Indonesia consumer business later this year.
Citi adds that its wind-downs in Korea and Russia are “in progress” and that it plans on pursuing an IPO of its consumer, small business and middle market banking operations in Mexico.
